The pair closed in NY Monday at $1.7106 after rate had been driven higher by end month demand which took it to extended highs of $1.7115 (68-month high) before drifting slightly off into the close. The move higher was seen in tandem with euro-dollar, as this pair also felt the effects of end month dollar sales, with euro-sterling held around stg0.8000. Cable consolidated this move through Asia above $1.7100, with trade contained within a tight $1.7103/12 range. Offers had been reported in place up to $1.7120, traders noting supply overnight (from the NY session) seen mainly from corporates and real money accounts. Option barrier interest also noted at $1.7125 adds to the resistance, with larger option barrier interest noted at $1.7150. Support seen into$1.7100/1.7090, with minor stops noted below, a break to open a deeper pullbacktoward $1.7075(38.2% $1.7009-1.7115) ahead of $1.7060/50(50%-61.8%). Some trader reports note wariness at buying into cable at these current elevated levels,preferring to buy into dips to $1.7030, or on a break of $1.7150. Euro-sterling demand seen into stg0.7990 ahead of stronger interest at stg0.7980. Resistance stg0.8015 ahead of stg0.8030. UK mfg PMI at 0830GMT provides domestic focus.
