The pair closed in NY Monday at $1.5085 after rate had extended its recovery off earlier Asian lows of $1.4972 to $1.5103 as it caught up on euro-dollar’s earlier short covering led correction. This strength in sterling was reflected in euro-sterling after the cross had pushed up to stg0.7506 into early NY trade, fell back to stg0.7450 into the close. Cable continued its recovery path in Asia, the rate pushing up from an early low of $1.5079 to $1.5109, while the cross extended its slip to stg0.74395, off an early high of stg0.7457. Sterling seen in favour especially vs QE currencies. UK Q4 GDP at 0930GMT provides the morning’s domestic interest with forecasts looking for a Q/Q 0.6%. Main focus in sterling is on inflation data but GDP should still prompt some reaction. US durable goods at 1330GMT provides the interest into the afternoon. Cable resistance seen at $1.5113(61.8% $1.5213-1.4952), a break of $1.5120 to open a move toward $1.5140/50. Support $1.5079-77 (Asia low-23.6% $1.4972-1.5109) ahead of $1.5055/40 and $1.5025/20. Euro-sterling support stg0.7410/00, resistance stg0.7500/10.
