The pair closed in NY Friday at $1.6802 after rate had corrected back from a post NFP high of $1.6845 to $1.6781 (on reversal higher in UST yields) before rate drifted higher through the NY afternoon to $1.6813. Market holiday in Australia (with several European centres also closed today) made for subdued Asian trade, cable contained within a tight $1.6803/11 range, euro-sterling between stg0.8117/20. A very light domestic calendar will have market looking toward outside influences for moves. Resistance/offers seen inplace between $1.6840/45 (T-line off May6-Jun6 high), with further sell interest seen into $1.6860 with stops on break. Above here and next resistance seen at $1.6880/85 ($1.6883 May27 high). Support remains into $1.6800, a break here to open a deeper move toward Friday’s low of $1.6781. Euro-sterling offers stg0.8130 ahead of stg0.8150/55. Support stg0.8100 ahead of stg0.8090/80 (61.8%-76.4% stg0.8064-0.8130), a break here to expose Thursday’s (Jun5) low at stg0.8064 (E1.2400). Traders remain in favour of playing the cross from the short side going forward but expect to see better levels to enter those positions in the near term.
