The pair closed in NY Monday at $1.6863, after rate recovered off an intraday low of $1.6814 (remaining buoyed above recent low at $1.6812 and its 76.4% retrace of $1.6693-1.7192 at $1.6811) to $1.6864. The rate closed above its key 100-dma (yesterday at $1.6862, today at $1.6865) though traders will want to see a clear break higher and another hold above at the close. Rate dipped back to $1.6859 in opening Asian trade but buyers quickly emerged and took it to extended recovery highs of $1.6871 (76.4% $1.6889-12). Rate then settled back at $1.6862/65 before edging to $1.6868 ahead of the European open. Focus this morning on UK services/composite PMI data at 0830GMT (median 58.0 for both). Cable resistance remains at $1.6871 a break to open a move toward recent highs at $1.6889/93(Aug1) ahead of $1.6900. Support seen at the Asian low of $1.6859, a break here to open a deeper move toward $1.6849-43 (38.2%-50% $1.6814-71) ahead of $1.6836(76.4%) with stronger support remaining at $1.6812/11. Euro-sterling extended its corrective pullback from Monday highs of stg0.7984 to stg0.7955 in Asia (NY low stg0.7959), consolidating the movebetween stg0.7955/0.79605.
