Closed in NY Friday at $1.5799, off a session recovery high of $1.5827, after rate had been pressed to extended lows of $1.5745 following the release of disappointing Q4 GDP data. Early Asia pressured cable off an early posted high of $1.5795, the early market, especially, thinned by the Australia Day holiday, with sales taking the rate down to $1.5756 before it picked up fresh demand interest that allowed rate to recover to $1.5786. The recovery proved short lived with sales then pressing the rate back to $1.5754 before it settled between $1.5755/70 ahead of the European open. A very light domestic calendar Monday will leave rate to track euro-dollar moves, as it mainly did through Asia, though activity in euro-sterling should pick up again in Europe with end of month Activity likely to put added pressure on sterling. The cross extended Friday’s high of stg0.8536 to stg0.8548 overnight, with traders turning sights onto the next reported barrier at stg0.8550. Cable support remains in place between $1.5755/45, with stops placed on a break of $1.5740. Resistance $1.5800/10 ahead of $1.5830.
EasyForexNews Research Team