Closed in NY at $1.5844, off traded lows at $1.5841. Rate nudged to an early high of $1.5862 in early Asia before turning lower, the rate dragged down by EUR/USD slippage though part of the downside pressure was diverted over to EUR/GBP which eased from an early high of stg0.82465 to stg0.8221. Cable met support ahead of $1.5820, the rate posting an overnight low at $1.5822. Recovery efforts remained shallow, with moves above $1.5830 meeting headwind supply. EUR/GBP demand remains in place at the stg0.8222 level (2012 low) with further demand noted into stg0.8220. A break here to expose the barrier at stg0.8200. Resistance stg0.8245/50. For cable, support remains into $1.5820, a break to expose stronger support into $1.5800, a break to allow for a deeper move toward $1.5780/70 ahead of stronger interest at $1.5750/40. Resistance noted at $1.5840/45 ahead of $1.5860/65 and $1.5895/00. Very light UK calendar for today, awaiting Tuesday’s release of inflation data.
EasyForexNews Research Team