The pair closed in NY Tuesday at $1.6213 after rate had taken advantage of dollar weakness, prompted by weak US consumer confidence data and end of month dollar sale flows, recovering off a session low of $1.6138 to $1.6220 before settling just off best levels into the close. Asia continued the corrective pullback, extending the move to $1.6198 before dip attracted fresh demand. Recovery was seen in tandem with euro-dollar, which in turn was seen driven higher by strong demand for euro-yen, which took cable through the NY high and on to $1.6231 (T-line off Oct23). Resistance here stalled the recovery with rate then settling around $1.6220 ahead of the European open. Euro-sterling lifted from overnight lows of stg0.8368 to stg0.8385, as move reflected euro-dollar’s stronger rally, but was pulling back toward stg0.8375 into Europe. UK GDP provides the domestic focus at 0930GMT, market waiting to see if the prelim release of Q3 Q/Q of 0.8% growth can be confirmed. Cable offers remain in place between $1.6230/40, a break to open a move toward the area of October highs from $1.6248 through to the stronger level at $1.6260. Stops are noted above. Support remains around $1.6200
