The pair closed in NY Tuesday at $1.7151 after sterling was given an added boost by the release of stronger than forecast Mfg PMI data which saw cable trade to an extended high of $1.7167 (post the London fix) before drifting off into the close. Sterling outpaced the euro versus the dollar which in turn allowed the cross to extend its recent corrective pullback to stg0.79735 in NY. The cross consolidated this move through Asia with trade contained within a range of stg0.79745-0.7980. Cable marked overnight highs at $1.7152 in early Asian dealing before the corrective easing continued, the rate marking lows at $1.7141 ($1.7140 38.2% $1.7096-1.7167) before it settled around $1.7150 ahead of the European open. UK Nationwide (0600GMT) and construction PMI data (0830GMT) provide the main domestic interest. Cable offers remain in place at $1.7167, with offers noted between $1.7170/75 ahead of $1.7185. A break above this area to expose $1.7200 with expectation this level will hold more barrier interest. As regards barriers, structures seen in sterling-yen at Y174.50, Y174.75 and Y175.00, this latter level also holding digital interest. Euro-sterling support stg0.7969-59 ahead of barrier interest at stg0.7950, resistance stg0.8000
