The pair closed in NY Tuesday at $1.6616 after rate had managed to recover off traded lows of $1.6596 to $1.6646 before rate eased into the close. Euro-sterling, which had seen traded lows of stg0.8320 Tuesday bounced back during the NY session to stg0.8347, and provided the main negative weight on sterling. The cross closed at stg0.8342, again above its 100-dma (Tues stg0.83284, Weds stg0.83265) with trade through Asia consolidating this recovery between stg0.8333/40. Cable eased to an overnight low of $1.6612 in early Asia before edging up to $1.6633, then settled between $1.6620/30 through the balance of the session. Rate trades around $1.6626 into Europe. A very light data calendar (UK trade numbers delayed to Friday Mar14) expected to make for continued subdued trade. However, the much reported stops below $1.6580 remain the attraction. Bids seen placed at $1.6600-1.6595, with stronger demand sitting ahead of stops at $1.6585/80. Further demand then seen into $1.6550. Resistance remains at $1.6650/55 ahead of $1.6680/85. Euro-sterling remains in its recent stg0.8150-0.8350 outside range, currently favouring the topside while it holdsabove broken trend resistance around stg0.8272.
