Closed in NY at $1.6249 after getting driven to highs at $1.6270 following the break above $1.6230, which in turn provided the momentum to take out barrier interest at $1.6250. The move lagged euro- dollar’s recovery and allowed euro-sterling to extend its recent recovery to stg0.8145 in NY, with Asia taking it on to stg0.8149. Cable touched an early low in Asia at $1.6246, matching the NY pullback off $1.6270, and again met willing buyers into the dip. Rate recovered through the Asian session to $1.6267, the move seen tracking euro-dollar as euro-sterling was confined to a tight range of stg0.8136/49. Pullback off the highs found support around $1.6260 with outlook into early Europe remaining firm. Traders Tuesday suggested the cross has room to push up to stg0.8165, which if proves true to provide some counter to cable gains. Cable offers $1.6270/80 (barrier $1.6275?) ahead of $1.6300/10 ($1.6310 2012 high Sep21). Support $1.6250/40. BOE Minutes at 0930GMT though no surprises expected (8-1 split on QE, Miles expected dissenter), and CBI retail sales data at 1100GMT.
EasyForexNews Research Team