The pair closed in NY Wednesday at $1.5778, just off its session lows of $1.5775, after rate had been sold down from intraday highs of $1.5940 following the release of the BOE QIR which markets responded to by moving back their rate hike forecasts to September from June 2015. Early Asia extended this reactive move, with technical traders noting the bearish close below the Nov7 $1.5791 low, to $1.5760 before rate settled between $1.5760/80 through the balance of the session. Euro-sterling, which had seen highs Wednesday of stg0.7890, continued to push higher in Asia, off its NY pullback low of stg0.78655, to stg0.7894(38.2% stg0.80465-0.7799). Trader reports from Asia see direction coming from cross activity, noting decent offers into stg0.7900, but make comment that this has been a popular short trade of late and a break of stg0.7915 could expose some decent stops. If these are triggered it will addfurther weight against the pound. Cable support now seen at $1.5760/50, a break to open a deeper move toward $1.5700. Resistance $1.5780, more at the broken support at $1.5791, with stops placed above $1.5800. A data light calendar for the UK with US weekly jobless claims providing the interest into the afternoon.
