The pair closed Monday’s holiday thinned session (US and UK closed) at $1.6843 after rate had recovered off early lows of $1.6828 to $1.6854 in very subdued trade. Rate dipped back to $1.6838 in opening Asia (suggested reaction to US Pfizer pulling out its bid for UK AstraZeneca by the May26 deadline) before the dollar came under general pressure. Rate rallied to a high of $1.6870 where it met decent resistance before settling back around $1.6860 ahead of Europe and London’s return. Traders have reported decent offers seen in place at $1.6880 with more above. Traders beginning to change their recent negative view on euro-sterling and have suggested going long into dips, placing tight stops below stg0.8080, with safer stops seen placed below stg0.8050. The cross traded through Asia between stg0.8100/0.81115, though was seen favouring the base ahead of Europe. A light data calendar in the UK Tuesday with US durable goods at 1230GMT the stand out interest. As mentioned, offers seen at$1.6880(61.8% $1.6922-1.6813), more into $1.6895/00. Support $1.6850 ahead of $1.6835/25 with stronger interest seen on approach to $1.6800. Euro-sterling offers stg0.8110/20, bids stg0.8080.
