The pair closed in NY Thursday at $1.6932 after rate had been pulled back off session highs of $1.6975 to $1.6924 as it reluctantly tracked euro-dollar’s sharp reversal lower as ECB Draghi signalled that the ECB were comfortable with cutting rates at the next meeting in June, dependent on Staff Projections. Most of the downside pressure was diverted over to euro-sterling as the cross was pressed back from highs of stg0.8249 to stg0.8168, closing the day around stg0.8173. Cable edged to $1.6935 in early Asia before it turned lower, the move triggering stops on a break of $1.6920 which took it to extended corrective pullback lows of $1.6916 before settling back around $1.6925 ahead of Europe. Euro-sterling consolidated Thursday’s sell off, trade overnightcontained by stg0.81725-0.8178. Cable support remains from $1.6916 through to $1.6900, a break to expose stronger support at $1.6885/80 (5-week T-line support moves up to $1.6888). Resistance $1.6950 ahead of $1.6975. Euro-sterling should lead direction in Europe as euro plays expected to dominate after Thursday’s comments. Support stg0.8160/50 (stg0.8160 61.8% stg0.7755-0.8815/stg0.8157 Feb17 low/stg0.8150 Medium demand/Option barrier). Resistance stg0.8190/00.
