Closed in NY at $1.5957, off pullback lows of $1.5945 which were seen after rate had pulled back from extended highs of $1.6002. Rate marked lows at $1.5947 into early Asian trading before stepping its way higher through the session to an eventual high of $1.5964. Rate drifted off highs but remained buoyed above $1.5950 ahead of the European open. Rate currently trades around $1.5958. Sterling retains an underlying buoyant tone though today’s UK GDP Q4 final could provide a knock to this sentiment. That said traders expect any deeper pullback to be cushioned by the $1.5920/00 area, with a break higher, following on from Tuesday’s brief show above $1.6000, seen needing to clear through $1.6000/20 to boost upside potential. The 200-week moving average at $1.6014 is in focus for Friday’s close, a break of this line over the past 10-years has caused a strong reaction. Offers seen at $1.5965/75 ahead of $1.5990 ($1.5989 76.4% $1.6002/1.5945) and the mentioned $1.6000/20 area. Bids $1.5945, $1.5920/00. End of month looms, expect to hear of EUR/GBP demand, though rate currently held by stg0.8335/70.
EasyForexNews Research Team