The pair closed in NY Wednesday at $1.6913 after rate recovered off lows of $1.6890. Release of stronger than forecast US GDP data provided the dollar with a general boost, the demand pressing cable below support at $1.6920 as rate extended its corrective pullback from recent highs of $1.7192 (Jul15). The recovery off the low extended to $1.6928 post FOMC, corrected back to $1.6907 before it edged higher into the close. Cable came under further pressure into Asia as rate was pressed down to session lows of $1.6906 before meeting demand interest which allowed it to recover through the balance of the session, pushing to a high of $1.6923 ahead of Europe. Focus this morning will initially be turned to the release of Nationwide house price data at 0600GMT (median 0.5%mm, 11.3%yy), though more focus will be on outside influences with US weekly jobless claims and the Chicago Report the main focus as main drive seen coming via dollar moves. Cable resistance seen at $1.6923 ahead of $1.6930-40 with the 55-dma and 50-dma coming in at $1.6962-74 respectively. Support into $1.6900 with interest extending to Wednesday’s low of $1.6890. Below here further demand seen at $1.6885/80 ahead of $1.6870. The 100-dma at $1.6859 seen key.
