The pair closed in NY Thursday at $1.6887 after rate had managed to recover off extended lows of $1.6857 (the move down prompted by release of slightly better than forecast US weekly jobs claims, as well as end month euro-sterling demand; based around its key 100-dma at $1.6858, today at $1.6861) to $1.6893, corrected to $1.6880 before edging higher into the close. This late recovery extended in early Asia with rate pushing up to $1.6900 (some screens show $1.6906 but disputed by most traders) then eased through the balance of the session to $1.6867 (76.4% $1.6857-1.6900). Rate recovered back above $1.6870 as market trimmed shorts ahead of the European open. The 100-dma line seen as key support, a break and close below would have technical traders looking at $1.6693 (May29 low). While above, and this line has held three challenges in 2014 and prompted a strong recovery, it keeps the recent underlying buoyant tone in place. Focus on key US employment data at 1230GMT, with action in the dollar providing the main market drive, though UK mfg PMI at 0830GMT (median 57.2 vs 57.5 last) will provide the earlier domestic interest. Cable support $1.6861-54,$1.6850-40. Resistance $1.6900, $1.6926.
