Cable closed in NY at $1.5957 after trade in NY was contained within a range of $1.5930/75, and it had recovered from an earlier European dip low of $1.5895. Rate again closed above its 200-dma, yesterday at $1.5899-today $1.5897, and was seen keeping the recent buoyant tone in place though upside progress seen thwarted by EUR/USD corrective easing seen after the LTRO allotment. Cable edged to an early high of $1.5967 in Asia before drifting off, in line with EUR/USD, to $1.5941, with the rate extending this move into early Europe to $1.5906 as further slippage in EUR/USD, following release of weak German retail sales data, weighed. EUR/GBP met support at stg0.8333/30, the break relieving pressure on cable which took the cross down to stg0.8317, while edging cable back to hold around $1.5920. Traders have noted that the retail community have been interested sellers on the $1.59 handle, which has kept upside progress pegged, though while rate can hold above the 200-dma keeps outlook positive.
EasyForexNews Research Team