GBP/USD Analysis

The pair closed in NY Monday at $1.5126 after rate had recovered through the day from an early Asian low of $1.5025 to a late NY high of $1.5138. Rate posted a high of $1.5129 in opening Asian trade before rate tracked euro-dollar slippage, the rate easing off to $1.5071 (holding just shy of support at $1.5068 61.8% $1.5025-1.5138), before it settled back above $1.5080 into of Europe. Euro-sterling diverted some of the downside pressure from euro-dollar as rate posted fresh 7+ year lows at stg0.7155, trading around stg0.7158 into Europe. Another data lite day for the UK with the domestic highlight being BOE Carney speaking at 1435GMT to the House of Lords Committee. Cable support remains into $1.5071-68, a break here to open a deeper move toward $1.5050 ahead of Monday’s low at $1.5025. Resistance seen at $1.5087(23.6% $1.5138-1.5071) ahead of $1.5100 and $1.5112(61.8%). Most reports still see euro-sterling having potential for lower levels, though such a move should provide buoyancy for cable, slippage in euro-dollar will also provide a counter¬†weight. Euro-sterling support seen into stg0.7150, with the corresponding E1.40 level coming in close behind at stg0.71428.