The pair closed in NY Friday at $1.5580 having recovered off a post US NFP low of $1.5568 into the close. The strong NFP number continued to provide for dollar buoyancy into Asia with rate pressed back from an opening high of $1.5590 to extended lows of $1.5562. Rate then recovered but met decent resistance into $1.5580 which capped before another round of dollar demand allowed rate to extend lows to $1.5556 where reported decent demand interest between $1.5560/50 cushioned the move before it recovered to $1.5567 ahead of Europe. Resistance now seen into $1.5580/85 ahead of $1.5600, the $1.5585/1.5600 area seen as a sell zone by one major UK bank. Stops seen in place on a break of $1.5550, which if triggered to open a deeper move toward $1.5520 ahead of $1.5500/1.5480. Euro-sterling remains favoured for further downside potential (euro-dollar expected to outpace cable on downside moves), and with this in mind should provide some cushioning for cable if further general dollar demand emerges. Asia trade was contained within stg0.78815-0.7900, trading around stg0.7895 ahead of Europe. Offers stg0.7920/30, more into stg0.7950 with stops on break. UK IP/Mfg Tuesday next domestic data of note
