Closed in NY at $1.5648 after rate had recovered through the NY session from lows of $1.5582 to $1.5659. Rate continued to drift away from those recovery highs into early Asia, finding a base at $1.5645 before picking up fresh demand that lifted the rate back to retest the NY high. Another pullback to $1.5645 following the initial rally saw stronger demand emerge to take rate on to $1.5667, falling just short of Tuesday highs at $1.5668. Rate eased off this high, finding support at $1.5650, opening Europe around $1.5653. EUR/GBP traded a familiar range around stg0.7850 through Asia,leaving cable to track EUR/USD moves through the session. Cross demand remains in place between stg0.7830/25, with resistance noted at stg0.7870 ahead of stg0.7880/85. Focus this morning will be on UK retail sales at 0830GMT, with GBP to take direction from this release. Cable offers seen placed from $1.5667 through to $1.5677 (area of recent highs) with the 76.4% retrace of the move down from $1.5778 to $1.5393 coming in at $1.5687. Further offers seen into $1.5700. Bids $1.5625/20 ahead of $1.5600.
EasyForexNews Research Team