The much talked about support ahead of 1.5800 continues to thwart the sterling uber-bears with GBP/USD tumbling yesterday to lows of 1.5806 in NY. The 1.5825 level holds the 50% fibonacci retracement of the 1.5269-1.6381 move did provide some initial support yesterday and may well do so again today as the pair has since climbed back in Asia and early Europe to a recent high of 1.5864.
Up above, moving averages come into play with the nearest being the 55 week MA at 1.5875 ahead of the 200 day MA at 1.5908.
Downside, bids come into play from 1.5820 down to 1.5800 with likely sell stops just below. Further support now seen towards 1.5770 and 1.5750.
Market events are likely to dictate play, but a resurgent EUR/GBP also likely to keep some focus on the downside ahead of PM Cameron’s EU speech tomorrow morning and the much discussed UK GDP release on Friday, which as mentioned yesterday, may well disappoint in Q4.
Cable currently trades around 1,5860 with EUR/GBP at a year’s high of 0.8429
