Closed in NY at $1.6138 with rate getting an early lift to session highs of $1.6143 as the option barrier at stg0.8000 was targeted and triggered, a US bank and a UK clearer the stand out sellers as rate dipped to stg0.7995. Cable reversed off highs, as the cross bounced back, the rate drifting off to $1.6117 in Asia, with early Europe adding further weight to extend move to $1.6101 (at writing with rate remaining heavy). The break of $1.6110 (76.4% $1.6088/1.6182) seen adding to the opening soft tone with Thursday’s lows at $1.6088 moving into view. A break here exposes the recent low at $1.6067. EUR/GBP has extended its recovery to stg0.80215, this rate also reflecting the easing tone in sterling as it holds firm up against that high. UK PPI the domestic interest at 0830GMT, but risk the main driver with focus on fallout from JPM’s announced loss, Greek political maneuvering and concern toward Spanish banks. Cable resistance seen between $1.6140/50 ahead of $1.6180/85 and $1.6200. Euro-sterling support remains at stg0.7995, stops below stg0.7990. Resistance stg0.8025/30
EasyForexNews Research Team