The pair closed in NY Friday at $1.7035 after rate had been pressed back from earlier session highs of $1.7052 (Asia) to a low of $1.7007, seen as a knock on reaction to a slight downside revision in UK y/y GDP data, but with rate able to hold above $1.7000 fresh buyers emerged at the London fix to lift rate back up to $1.7045 ahead of the close. Trade through Asia was contained within a range of $1.7024/40, trading just off lows into Europe. UK mortgage data at 0830GMT provides the morning’s domestic interest, though there is plenty of outside influence for traders to focus on. Germany retail sales at 0600GMT, EZ flash inflation at 0900GMT and the Chicago Report at 1345GMT. Main focus this week will be on Thursday’s ECB meeting with US NFP brought a dayforward due to the July4 holiday Friday. Cable demand seen placed on approach to $1.7000, a break of $1.6995/90 to open a deeper move toward $1.6975/70 ahead of stronger interest placed on approach to $1.6950. Resistance $1.7045/55 ahead of area of recent highs at $1.7061-64. Euro-sterling was contained in Asia by stg0.8008/0.80145. End month flows providing buoyancy though underlying trend bearish while below 21-dma (stg0.8040) and t-line rsst at stg0.8080.
