The pair closed in NY Tuesday at $1.6728 after seeing a spike low of $1.6657 into release of UK CPI data, as stops below $1.6680 were targeted and triggered, before the as expected release allowed rate to rally back to $1.6751 before it drifted lower into the close. Euro-sterling, which had seen highs of stg0.8284 into data release, dropped back to stg0.8246 before it closed around stg0.8258. Cable held between $1.6724/30 in early Asian trade before marking highs at $1.6735, as market reacted to the release of stronger than forecast China GDP data. However, sellers emerged to press rate back to $1.6721 as analysts made comment on the China m/m figure. Rate then settled between $1.6722/27 ahead of the European open. Euro-sterling was confined to astg0.8254/63 range, favouring the topside into Europe. UK employment data at 0830GMT with market showing expectation for numbers on the stronger side (especially earnings data). Cable resistance seen at $1.6750/60 with stops above. Support $1.6720 ahead of $1.6705/1.6695 and $1.6680.
