The pair spiked to $1.5714 Thursday on extended react to President Draghi’s press conference and the headline that the ECB will reassess current stimulus next quarter. A sharp reversal followed after dollar-yen took out the Y120.00 barrier, before a short squeeze in tandem with euro-dollar lifted to extended highs of $1.5725 amid choppy trade. Rate later drifted to close in NY at $1.5678. Euro-sterling saw gains extend from stg0.7850 to stg0.7922, before light profit take sales eased. Cable opened in Asia at $1.5670 and was given an early lift to $1.5682, before fresh selling pressure emerged with a sharp reversal to $1.5641. Recovery efforts stalled around $1.5650/60, before persistent dollar demand added weight to $1.5632. Demand is seen placed on approach to $1.5620/00, a break opens key tech support at $1.5585 (2014 low – Dec1). Euro-sterling spiked through stg0.7900 to stg0.7920 on the move where it stalled ahead of resistance from the Dec4 high. Profit take sales eased, before a late wave of demand consolidated around $0.7916/18. Initial resistance is seen at stg0.7922 (61.8% stg0.7977-0.7832), offers behind on approach to stg0.7950.
