The pair closed in NY Friday at $1.6832 after rate had extended its corrective pullback, off May21 highs of $1.6922, during the NY session to $1.6813 before edging back into the close. Asia consolidated this recovery between $1.6828/40, with rate trading around $1.6835 ahead of the European open. Markets expected to be fairly subdued due to the public holidays in the UK and US. Euro-sterling, which had seen extended 2014 lows of stg0.80815 Friday, closed last week at stg0.8095, with trade through Asia contained within a tight stg0.8090/0.80965 range. Cable support seen placed into $1.6800 ($1.6802 May20 low), a break to open a deeper move toward $1.6785/80 ahead of the 50-dma at $1.6752 (55-dma $1.6741). Resistance noted at $1.6840/50, a break to open a move back toward $1.6875/80 ahead of $1.6895/00 and stronger interest between $1.6918-22. For the cross, strong demand seen in place on approach towardstg0.8080, a break to expose the 100 month m/a at stg0.8073 ahead of barrier interest at stg0.8050. Resistance remains at stg0.8110/20. A reasonably light data week in the UK with attention on outside influences.
