Closed in NY at $1.5863, off session lows of $1.5817, as well as above its 200-dma which Wednesday came in at $1.5857 (today $1.5856). The recovery continued into Asia, the rate pushing to a session high of $1.5885 ($1.5883 61.8% $1.5924/1.5817) before faltering then dropping back as markets reacted to the release of weaker than expected, and rumoured, HSBC China PMI data, which pressed rate to lows of $1.5860. Recovery through the Asian afternoon saw rate edge toward $1.5875/80, with rate currently trading around $1.5873 in early European dealing. EUR/GBP traded through Asia between stg0.83245/0.83450, favouring the higher end into Europe. The close above the 200-dma keeps the underlying technical buoyant tone in place for sterling though attention will turn to today’s release of UK retail sales (0930GMT) to underline this view. GBP offers remain in place at $1.5885, a break to open a move toward $1.5900 ($1.5899 76.4% $1.5924/1.5817). Above here and rate can edge on toward the $1.5924/29 area of recent highs, with offers seen to $1.5930. Support $1.5860/55, ahead of $1.5835/30 and $1.5817.
EasyForexNews Research Team