The pair closed in NY at $1.6449 after rate had had initially posted extended recovery highs of $1.6605 into early European trading before squeezing to lows of $1.6410 in NY before recovering into the close. This recovery extended to $1.6458 before meeting resistance, then eased to $1.6422 ($1.6421 76.4% $1.6410-58), bounced to $1.6450 before settling between $1.6435/45 ahead of the European open. Euro-sterling, which had seen extended lows of stg0.8270 Thursday, recovered in NY to stg0.8320 with Asia consolidating this correction back above stg0.8300 between stg0.83035-0.8315. UK data begins with the release of Nationwide house prices at 0700GMT, with UK construction PMI due at 0930GMT along with UK lending data. Cable demand remains in place into $1.6420 with stronger interest now seen close behind at $1.6410/00. A break here to open a deeper move toward $1.6380/70 ahead of $1.6355/50. Resistance $1.6460, a break to open a move on toward $1.6480/85 ahead of $1.6500/10. For euro-sterling, offers remain at stg0.8320, a break to allow for a move toward stg0.8330/35 ahead of stg0.8350. Support remains into stg0.8300 ahead ofstg0.8270.
