The pair closed in NY Thursday at $1.6031 after rate had managed to recover off UK retail sales react lows of $1.5995 to $1.6051 before it drifted off through the NY afternoon to $1.6021 then partially recovered into the close. Early Asia saw rate consolidate around $1.6030 before it pressed down to retest that NY pullback low at $1.6021. Rate again met decent demand here and recovered to $1.6038. A drift off into the Asian afternoon to $1.6026 eventually met fresh demand that took rate to session highs of $1.6046 ahead of the European open. Euro-sterling, which had seen an extended recovery off stg0.7871 to stg0.79265 on the UK data, eased off through the balance of Thursday trade to stg0.7884. Trade in Asia also consolidated moves, trade through the overnight session contained by stg0.7887/95. UK Q3 GDP at 0830GMT provides the morning highlight, market expecting 3.0%y/y from last 3.2% and any deviation from this median expected to determine next direction. Cable support remains in place between $1.6000/1.5985, a break to open a deeper move toward $1.5950/40. Resistance $1.6050 ahead of $1.6080, with the 21-dma at $1.6102 remaining key. Support in the cross at stg0.7870/65 also seen key.
