Closed in NY at $1.5901, having pierced above its key 200-dma at $1.5903 (today $1.5902), though failed to close above. Rate dipped back to $1.5898 into early Asia before heading higher, the move triggering stops above $1.5910 before meeting resistance ahead of Feb 8 highs at $1.5929. Rate held above $1.5920 before making the break above $1.5930, the move triggering further stops to extend move to $1.5938. Rate settled back between $1.5925/35 before extending pullback to $1.5920 ahead of the European open. Fresh selling into the extended move into Europe has taken the rate back to $1.5915, but underlying tone remains buoyant. Resistance remains at the overnight high at $1.5938, a break to open a move toward $1.5950 ($1.5947 76.4% $1.6167/1.5234-year’s range), with offers noted between $1.5950/60 ahead of $1.5980. Support seen back at $1.5900, stops on a break of $1.5890. UK lending data due up at 0930GMT but key event for today will be the results of the ECB LTRO. EUR/GBP consolidated its pullback away from recent highs at stg0.8490 between stg0.8457/67 in Asia.
EasyForexNews Research Team