Cable closed in NY at $1.6125 after recovering to $1.6135 in this session and holding above $1.6100 ($1.6109 pullback low) into the close. Trade in a generally subdued Asian session was contained within a tight $1.6110/30 range, with early trade into Europe seeing cable initially struggle to edge higher in tandem with EUR/USD, which allowed EUR/GBP to edge up to stg0.8170, extending its recovery off Monday lows of stg0.8149. The cross met willing sellers in the stg0.8170/75 area and reversed, the move taking cable above $1.6130/35 and onto retest recent highs at $1.6150. Rate touched $1.6155 before being repulsed but demand at $1.6135/30 supported and allowed for another run higher, this time extending highs to $1.6158. Another pullback again supported at $1.6130/35 saw rate settle back around $1.6150. Sell interest in the cross at that stg0.8170/75 was seen keeping cable buoyed, but support between stg0.8150/30 seen as an area to clear before sterling can progress further.
EasyForexNews Research Team