The pair closed Monday’s holiday thinned session at $1.6084 after rate had bounced off a session low of $1.6051 to $1.6110 late in the day, the move up having lagged behind a stronger recovery in euro-dollar. This move allowed euro-sterling to punch above resistance at stg0.7900, with triggered stops taking the cross on to an extended high of stg0.7935, before closing the day at stg0.7930. The corrective pullback in cable extended from $1.6095 to $1.6062 in early Asian trade, though move again tracked euro-dollar which allowed euro-sterling to back away from the stg0.7935 area to stg0.7915. Cable settled between $1.6065/80 through the balance of Asia, supported as euro-sterling consolidated between stg0.7915/20. Attention today will turn to the release of UK CPI data at 0830GMT (median 1.4%y/y vs prev 1.5%), the expected fall seen linked to an easing in petrol prices as well as intense food price competition. Cable support seen in place between $1.6060/50, a break to open a deeper move toward $1.6032/27 ahead of $1.6010/00. Resistance $1.6095-1.6110, with stronger interest seen at Friday’s high at $1.6135. Euro-sterling support into stg0.7900 with stops below. Resistance stg0.7935.
