The pair remained under heavy selling pressure on Thursday after it extended the corrective pullback off European session highs of $1.6456 to $1.6332. Initially holding around $1.6440 following the BOE’s decision to leave rates on hold at 0.50%, sentiment soon turned after the ECB announced a 10bps cut to all three lending rates. Cable was marked lower in tandem with euro-dollar and took out barriers at $1.6400 and $1.6350 on the move to 7 month lows. Euro-sterling saw sharp slippage before strong support ahead of stg0.7900 cushioned falls to close at stg0.7920. The underlying tone remained heavy into the Asian session and as traders reported of real money supply, cable took out the $1.6300 barrier with moves extending to $1.6287. Support in the dip ahead of$1.6283 (38.2% $1.4813-1.7192) provided a minor recovery to $1.6310, however any bounces remain shallow amid thin markets. A break on the downside opens a move towards the next barrier at $1.6250 ($1.6252 – 2014 low-Feb5) with large stops set on a break. Euro-sterling spiked to stg0.7938 in early Asia, however momentum stalled and the cross settled in the middle of its narrow daily range, last stg0.7928
