The pair closed in NY Monday at $1.5251 after rate had recovered off an early NY pullback low of $1.5203 to $1.5271, before drifting off into the close. Earlier in the day the rate had posted lows of $1.5185 before it recovered to $1.5318. The close back above the rate’s rising trend line, off 2009 lows, at $1.5246 seen providing some buoyancy into Tuesday trade (Asia low $1.5247) but rate seen struggling to break higher. Resistance remains at the Asian high of $1.5274(61.8% $1.5318-03), a break to open a move toward $1.5291(76.4%). Above here and rate can push on toward the $1.5315/20 area. Support $1.5247, $1.5225/20 and stronger interest into $1.5200. Below here and Monday’s early low of $1.5185 moves back into view. Euro-sterling saw an outside range of stg0.7801-50 Monday with trade in Asia contained within a tighter stg0.78205-0.78355 range, pressuring the topside into early Europe. Domestic focus today on UK services PMI at 0930GMT, other releases in the UK PMI set so far have disappointed (median 58.5 vs last 58.6). Eurozone and US services PMI also released today, as well as US factory orders.
