The pair closed in NY Monday at $1.6355, euro-sterling at stg0.8375. After rejecting the $1.6380 level during light European trade, cable extended the slow grind and squeezed in early NY to $1.6329. Support in the dip cushioned allowing a modest recovery to $1.6350/60 and settle in the middle of a narrow daily range. Euro-sterling stalled ahead of strong offers into stg0.8400, later drifting with euro-dollar into the close. Broad based dollar demand in early Asia pressed cable to $1.6333, however with lack of follow through momentum soon faded in subdued markets. The move met fresh buying in the dip allowing an immediate bounce back to $1.6350 where the rate settled in a narrow10 pip range throughout the Asian afternoon. Bids are reported on the downside at $1.6325/20, a break opens techs at $1.6318 (61.8% of $1.6214-1.6486). Euro-sterling lifted to stg0.8381, before turning lower to settle around stg0.8365/70. Strong offers continue to cap the topside into stg0.8400 (50% of stg0.8467-0.8331), a break opens stg0.8415/20 (stg0.8413 – 55-day ma).
