Month-end related flow saw EUR/GBP recover off European session lows of stg0.7913 to stg0.7970 on Friday. Cable pressured on the move reversed from $1.5725 to $1.5614, before support in the dip cushioned to close in NY at $1.5638. The cross encountered light profit take sales to close the week on a buoyant tone at stg0.7955. Cable opened near session highs of $1.5664, before a risk-off start to Asian markets saw a sharp pullback to $1.5620 in tandem with euro-dollar. Sterling continued on the defensive with a move through $1.5600 to extended lows of $1.5586, before dip demand cushioned falls. Cable managed to reclaim the $1.5600 handle and saw recoveries extend to settle around $1.5610/20. On the downside demand is seen placed at $1.5580, stronger behind on approach to the $1.5550 barrier. Euro-sterling opened at stg0.7953 and encountered a wave of demand interest to stg0.7970, which later extended to stg0.7977. The cross holds firm with resistance seen at stg0.8002 (Nov 21 high), offers behind on approach to stg0.8020.
