Closed in NY at $1.5692 after rate had been pressured to extended lows of $1.5674 following the triggering of option barriers at $1.5700 and $1.5680, with recovery efforts ahead of the close capped below $1.5700. Cable posted early Asian lows at $1.5686 before performing a steady climb higher through the overnight session, trading to a high of $1.5708 ahead of the European open. Euro-sterling, which has been seen as the main driver of sterling’s recent losses over the past few sessions, had seen highs of stg0.8586 in NY, with trade in Asia seeing rate extend its corrective pullback from that level, opening the session around highs of stg0.8574 before drifting off to stg0.8563 into Europe. Traders expect the cross to retain a buoyant tone into the end of the month, a European central bank an oft noted buyer of the cross for accounting purposes, which along with the general negative view of sterling, should keep weight on. Cross resistance seen from stg0.8585 through to stg0.8600. Support stg0.8550. Cable resistance seen into $1.5710 ($1.5709 50% $1.5743/$1.5674), a break to open a move toward $1.5727 (76.4%). Support $1.5680/70, a break to open a deeper move toward $1.5650/35.
EasyForexNews Research Team