Closed in NY at $1.6238, after rate had recovered off traded lows at $1.6222 to $1.6240. Edged up to mark overnight highs at $1.6240 before drifting lower through the balance of the session to an eventual low of $1.6223 ahead of the European open. Rate currently trades around $1.6230. May Day holiday in Europe expected to make for another subdued session, thought the expected thin conditions could allow for increased volatility and leave stops, placed outside of recent ranges, vulnerable. Focus this morning will be on UK mfg PMI data at 0828GMT, with market interest looking toward growth for direction. Support seen into $1.6220, with further interest seen dotted down to $1.6200. A break here to allow for a deeper move toward $1.6180 with stops noted below this level. Resistance remains at $1.6240, with offers seen from here and extending toward $1.6250, a break to open a move toward $1.6280/85. Through here and the area around $1.6300 to move back into view. EUR/GBP bounced back from fresh 22-month lows of stg0.8123 Monday to stg0.8160 in NY with Asia consolidating this recovery between stg0.8154/69.
EasyForexNews Research Team