The pair closed in NY Wednesday at $1.6711 after rate had been pressed lower through the day, further extending its corrective pullback from recent highs of $1.6883 (May27). Rate saw a low of $1.6697 ahead of the London fix before it drifted back above the figure into the close. Initial sterling sales were seen from around the 0700GMT fix, one trader commenting that this was seen Tuesday as well and might be worth watching today as looks to be end month related. Cable slowly extended its recovery through the Asian session, touch a high of $1.6728 and holding firm ahead of Europe. Euro-sterling, which extended its recovery off Tuesday lows of stg0.8086 to stg0.8143 Wednesday, consolidated this move through Asia between stg0.81315-0.81365. A light domestic data calendar today, BOE Haldane’s speech from May21 to be released at 1000GMT. US jobless claims, GDP, personal consumption at 1230GMT ahead of pending home sales at 1400GMT. Cable resistance seen at $1.6730/35 (broken support $1.6732) ahead of $1.6750 then $1.6764-66 (50-dma/broken t-line support). Support remainsaround $1.6700 with stops now on a break of $1.6690. Stronger support seen at $1.6670/60.
