Closed in NY at $1.5844 after rate had recovered off a corrective pullback of $1.5830 seen after rate had failed to push above $1.5900 (NY high $1.5892). Rate stepped its way to an early low of $1.5813 in opening Asian trade, but move remained wary of retesting recent lows ahead of $1.5800, market aware that decent demand is seen in place ahead of $1.5800 (barrier protection). Release of stronger than forecast China PMI data saw rate recover to $1.5835 before momentum faded and it drifted back off to $1.5828 ahead of the European open. PM Cameron’s UK/EU relationship passed without any major surprises, with the BOE Minutes also seen as expected. A better than expected employment release did provide sterling with some support but Friday’s Q4 GDP release lurks in the background and seen key for direction into next week. If the headline number comes in negative it will have market commentators suggesting the UK on the verge of triple dip recession, with its threats to the UK’s rating. Cable support remains toward $1.5800 ahead of $1.5780/70 ahead of $1.5750. Resistance $1.5850/55, $1.5870/75 and stronger between $1.5890/00. Large stops $1.5910/20. Euro-sterling contained by stg0.8403/13 in Asia.
EasyForexNews Research Team