The pair closed in NY Tuesday at $1.5156 after rate had been pressed to extended lows of $1.5137 earlier in the session in Europe, visiting $1.5139 in NY before recovering into the close. Dollar strength, as well as market positioning for any dovish tone forthcoming from new BOE Governor Carney after tomorrow’s MPC decision (though no change in rates/QE expected at tomorrow’s meeting) has seen cable under pressure, despite release Tuesday of construction PMI which remained in growth territory. Focus today will turn to UK services PMI at 0828GMT, ahead of release of BOE credit conditions at 0830GMT. Euro-sterling was held within a tight stg0.85595-0.85655 range in Asia, consolidating its corrective pullback off Tuesday highs of stg0.8595, leaving cable to track euro-dollar moves overnight. Cable support seen at $1.5140/35 ahead of $1.5120/10. Further demand then seen at $1.5100, stops below $1.5090. The $1.5050 level to provide stronger support, 76.4% $1.4832-1.5753. Resistance seen at $1.5165, with further interest then dotted through to $1.5180 with stops above.
