The pair closed in NY Tuesday at $1.6116 after rate had recovered off intraday lows of $1.6060 to $1.6133 before easing to $1.6108, recovering to $1.6129 then drifting off into the close. The corrective pullback extended to $1.6112 in opening Asian trade before market reacted to Fed Bernanke’s comments which were viewed as dovish and similar to Fed Yellen comments last week, reiterated in a published letter Tuesday. Cable spiked to $1.6143, though move was not as strong as euro-dollar which allowed euro-sterling to break back above stg0.8400, moving through Tuesday’s stg0.8404 high and on to challenge the stronger resistance area between stg0.8415/20 (Asia high stg0.8415). Euro-yen sales led a reversal with cable easing back to $1.6106, recovered to $1.6129 before it settled between $1.6106/16 ahead of the European open. Euro-sterling consolidated its gains above stg0.8400. Strong offers are noted betweenstg0.8415/20, with stops above, though further resistance then seen into stg0.8430. Cable resistance remains into $1.6150, ahead of $1.6160/65. Support $1.6102-$1.6092 (50%-61.8% $1.6060-1.6143), $1.6080 (76.4%). Stronger demand$1.6060 through to $1.6050/45. BOE Minutes at 0930GMT the morning focus.
