Cable recovered off lows of $1.5836 after the London fixing on Friday and extended gains to $1.5901 in the US afternoon. The rate later pared light gains and closed around $1.5880. Euro-sterling remained on the defensive and late trade saw the cross bounce off intraday lows of stg0.8010 to close at stg0.8020 and under the 55-day ma. A positive start for Asian equities lifted cable in early trade through $1.5900 to $1.5907 as risk appetite increased. Tight range continued as the pair tracked euro-dollar’s extended recovery to settle around $1.5918. Tech resistance seen at $1.5939 from the 100-week ma, ahead of offers at $1.5940/50 ($1.5944 – 50% of $1.6043-1.5882). Euro-sterling trade was light tied to a narrow stg0.8011-26 Asian range. Strong demand seen on the downside at stg0.8005/00, ahead of stg0.7970 (13 Nov low).
EasyForexNews Research Team