The pair closed in NY Monday at $1.6869 after rate had seen recovery highs of $1.6903 earlier in the session, off Friday lows of $1.6832 (Monday low $1.6840), with rate posting a corrective pullback low of $1.6863 before edging higher into the close. This recovery extended into a holiday thinned Asian session (Singapore, Malaysia and Thailand closed) to $1.6874 before momentum picked up pace on the back of sterling-yen demand and rate traded to a high of $1.6883 (50% $1.6903-1.6863). Rate eased off to $1.6872 on order exhaustion but buyers were quick to emerge into the pullback with cable retesting that earlier high into Europe. Further resistance levels seen at$1.6888-94, 61.8%-76.4% retracement levels respectively, ahead of the $1.6900/05 area. Support seen at $1.6870-60 ahead of $1.6845/40 ($1.6843 21-dma) and Fridaylow at $1.6832. Euro-sterling consolidated Monday’s break below stg0.8157 (low stg0.8143), with trade contained within a range of stg0.8150/58. The close below stg0.8157 keeps technical target at stg0.8000 in view. Bids stg0.8145/40, stops on break. Resistance stg0.8170. A light UK data calendar Tuesday with focus set on Wednesday’s employment report and BOE QIR.
