Another quiet Asian session for cable, the rate closed Monday in NY at $1.5696 after profit take sales off $1.5720 highs. GBP has seen decent risk appetite to start the week and trades as a safe haven ahead of the expected increase in QE from the MPC on Thursday. GBP opened in Asia at $1.5690 and ground higher to $1.5706 amid light flow with many investors sidelined due to the RBA rate decision. Late supply eased and the rate settled around $1.5695. EUR/GBP closed in NY at stg0.8020 after recovering from earlier lows of stg0.8006. Asian trade was flat and the cross tracked EUR/JPY demand to stg0.8028, easing lower on light flow. Cable resistance seen at $1.5715/20, more offers behind at $1.5735 ahead of key technical resistance at $1.5752 from the 100 Day MA. Reported bids at $1.5660, ahead of $1.5620. EUR/GBP resistance capped at stg0.8040, a break to the 21 Day MA at stg0.8056. Strong bids reported into stg0.8000, ahead of stg0.7985 (27 Jun low). Light calendar for the UK Tuesday with highlights from UK PMI Construction data, released at 0830GMT.
EasyForexNews Research Team