Closed in NY at $1.5013, after pulling back from a recovery high of $1.5083, with euro-sterling’s break above stg0.8700, and push on to stg0.8732 providing the late negative weight. Cable managed to recover to $1.5026 in early Asia only to come under further downside pressure as traders reacted to reported comments in the press from Eurogroup president Dijsselbloem that ‘Britain’s high national debt and persistent budget deficit had left it (sterling) vulnerable to attacks from currency traders. Cable stepped its way to an overnight low of $1.4982, while the cross extended its recovery to stg0.8740, but the pound was finding friends into early Europe as it pulls away from worst levels. Cable demand remains in place into $1.4980, stronger between $1.4965/60 ahead of barrier interest at $1.4950. Resistance seen at $1.5000, a break to open a move toward $1.5020/30. Euro-sterling sees resistance into stg0.8750/60 (stg0.8759 76.4% stg0.8815-0.8576). Support stg0.8720, stg0.8700.
EasyForexNews Research Team