We’re holding just above 1.6100 at the moment and next few hours could well decide if this pound is finally going to push higher towards the 1.6500 area.
A close above the 200week MA around 1.5958 on the week is a bullish signal and today’s UK retail sales were very strong even discounting the fuel influence.
Next week also sees the HSBC Q1 dividend demand for sterling and if EUR/GBP fails to close significantly higher tonight around 0.8230, there’s every chance of a stronger leg higher in Cable next week.
There are offers lying ahead in cable at 1.6130 and towards 1.6170 (Oct 2011 highs)
Cable’s at 1.6106 just now.