Closed in NY at $1.5895, off late rally highs of $1.5911. Rate edged back to post an overnight Asian high of $1.5905 in opening trade before drifting lower, the move down tracking EUR/USD though EUR/GBP extending its corrective pullback from its NY high at stg0.8269, seeing this rate move down from early Asian highs at stg0.8261 to stg0.82545, diverted some of the downside pressure. GBP traded to a low of $1.5872 and was holding heavy into early Europe (extends lows to $1.5870 at writing). Focus on UK inflation data at 0830GMT. Bids seen placed between $1.5870/65 ($1.5865 50% $1.5819/1.5911), a break to open a deeper move toward $1.5850/40 ahead of stronger interest placed from $1.5820 and extending toward $1.5800. Resistance remains at $1.5905/11, a break to open a move toward $1.5930/35 ahead of $1.5950. For the cross, strong offers remain in place toward stg0.8270, a break to open a move toward stg0.8275/80. Bids stg0.8255 (23.6% stg0.8210/69, Asia low stg0.82545), a break of stg0.8250 to expose next support at stg0.8245/40 ahead of stg0.8235/30.
EasyForexNews Research Team