The pair closed Friday at $1.7088 after rate had recovered off pressured lows of $1.7037(US bank fix sales 1300GMT) before correcting to $1.7094 ahead of the close. Rate closed under its 21-dma ($1.7097, today at $1.7100) which some had suggested would put a bearish tone on cable into this week, with rate holding below thus far in Monday trade. Cable touched an early low of $1.7080 in Asian trading before picking up demand interest, the move up mainly driven by dollar softness across the board, the rate marking overnight highs at $1.7099(76.4% $1.7118-1.7037 Friday range) with rate holding firm into Europe. A break above the figure to open a move toward reported sell interest placed between $1.7110/15. A break to open a move toward $1.7130/35 ahead of $1.7155(76.4% $1.7192-1.7037). Support $1.7080/75, a break to open a deeper move toward $1.7060/50 ahead of Friday’s low at $1.7037. Euro-sterling containedbetween stg0.7914-24 in Asia, opening Europe around stg0.7920. Sterling remains in favour though traders prefer to buy cable dips, sell euro-sterling rallies. A light domestic data calendar Monday with focus on Tuesday public sector borrowing, Wednesday MPC Minutes, Thursday retail sales and Friday key Q2 GDP.
