The pair closed in NY Monday at $1.6645 after rate had extended its corrective pullback, off Friday’s high of $1.6787, to $1.6622 as strong demand for euro-sterling (rate extending its recent recovery to stg0.83505) provided the main drive. Sterling closed the day off worst levels, cable edging to the mentioned close while the cross eased to stg0.8333, though more significantly for technical traders, above its 100-dma (today at stg0.83284; Mon stg0.83295). Cable nudged to a high in Asia of $1.6648, the rate continuing to find stiff resistance into $1.6650, before turning lower in the Asian afternoon to post overnight lows at $1.6633, the level under pressure into early Europe.Euro-sterling trades around stg0.8334. The cross seen needing to make a clear break above stg0.8350 to provide another upside push, though while rate holds above the 100-dma, and the broken trend resistance line at stg0.8275, seen keeping the underlying tone buoyant. Cable support remains at $1.6622/17 ahead of $1.6605/00, with stronger interest noted at $1.6585/80 and into $1.6550. Resistance $1.6650, $1.6680 and $1.6700. UK IP/MP at 0930GMT to provide the domestic data interest, with BOE Carney at the TSC from the same time.
