The pair closed in NY Monday at $1.6810 after rate had posted multi year highs at $1.6858 on the back of demand prompted by confirmation from US Pfizer of its interest to buy UK AstraZeneka. However, talk of an Astra price tag rebuttal, along with Pfizer stating that funds for such a takeover are mainly held offshore, weighed back on sterling, which along with release of stronger than forecast US house data and a ramping up of sanctions against targeted Russians, pressed cable to session lows of $1.6801. Reported demand placed between $1.6805/1.6795 cushioned the move. Early trade in Asia was contained within a very tight $1.6807/10 range (trade very subdued due to theTokyo holiday; start of Golden Week) before it lifted to $1.6817 before settling again between $1.6813/15 into Europe. Domestic focus turns to release of UK Q1 GDP (median 0.9% Q/Q), most expecting a strong/forecast confirmed release though note that services could weigh on weather related risks. Cable resistance seen at $1.6823 (38.2% $1.6858-01) with 50% at $1.6830, 61.8% $1.6836 and 76.4% at $1.6845. A break of $1.6858 to expose next barrier interest at $1.6875, more at $1.6900. Support remains at $1.6805-795 ahead of $1.6780/70.
