The pair closed in NY Tuesday at $1.6629 after rate had been able to recover off a post UK mfg PMI react low of $1.6619 to $1.6652 before drifting off into the close. Early Asia saw rate consolidate in a tight range around $1.6630 before it eased off to mark overnight lows at $1.6622, bounced to $1.6636 before steadying between $1.6631/35 into the Asian afternoon. Sell interest emerged again ahead of the European open to ease trade range to $1.6623/28. Euro-sterling, which had bounced off lows of stg0.8263 to stg0.8306 Tuesday, consolidated just off those highs between stg0.8293/0.8304 through Asia. The cross remains firm into early Europe, though many have suggestedlooking for levels to short ahead of Thursday’s ECB rate announcement/press conference, but technically room seen for a move back up to retest last Thursday’s highs at stg0.8322, with further resistance seen between stg0.8330/40. Cable continues to find support above its 21-dma, today coming in at $1.6613(Mar31 low), with stronger support noted at $1.6600/1.6595. Resistance $1.6635, $1.6650/55. UK construction PMI at 0830GMT the morning focus.
