The pair closed in NY Tuesday at $1.6386 after rate had eased off an intraday high of $1.6437. Cable had recovered earlier in the day, extending its correction off Monday lows of $1.6343, the move gaining a boost on the back of stronger than forecast UK construction PMI. Rate continued its corrective pullback in early Asia to $1.6378 before fresh demand emerged to gradually lift it back to $1.6396, holding around $1.6390 into Europe. Euro-sterling was confined to a tight stg0.82895-0.8296 range leaving cable to take direction from euro-dollar moves. Release of an improved BRC shop price index had little effect. Focus today will turn to the release of services PMI data at 0928GMT.Market will be waiting to see if the release will complete a strong set of PMI data after mfg and construction PMI’s came in above forecasts. Cable resistance seen from $1.6400 and extending to $1.6415 (area covers 38.2%, 50% and 61.8% of $1.6437-1.6378), then $1.6420/25 ahead of the area of recent highs between $1.6437/43. Offers seen to barrier interest at $1.6450. Support $1.6380/70, $1.6350. Cross barrier at stg0.8250 currently keeps rate supported, while offers into stg0.8300 cap.
