The pair closed in NY Thursday at $1.6868 after rate reversed away from earlier highs of $1.6918 to a low of $1.6851, though pullback said to have met demand in the move lower, initially into $1.6870, with stronger bids encountered toward $1.6850. Rate began Asia around $1.6870 and slowly drifted lower in early trade before picking up momentum which allowed rate to touch an overnight base at $1.6854. Move lower was seen in tandem with euro-dollar. Cable recovered through the balance of the session, marking highs at $1.6873 and was seen holding firm ahead of the European open. A light domestic calendar Friday, Germany GDP at 0600GMT, then Germany Ifo at 0800GMT, the main outside influences. Traders aware of the approaching long weekend in the UK and US which may prompt some position adjustments into the break. Resistance seen between $1.6875/85, a break to open a move on toward $1.6900/05 ahead of $1.6918-22. Support $1.6850/45 ahead of $1.6830/20. Euro-sterling saw extended lows of stg0.8085 Thursday with recovery effort checked in the stg0.8110/20 area. Rate was confined to a tight stg0.80885-0.8096 range with outlook still favouredlower ahead of the ECB Jun5 meeting
