The sterling has followed its European peer on Friday, rapidly climbing from the 1.6240 region to levels just shy of 1.6310, after ‘stop’ orders were triggered, according to market chat. The upside has also been propped up by upbeat data out of the UK public finances during August. In fact, the UK Public Sector Net Borrowing improved to £12.36 billion from -£1.92 billion in July.
At the moment, the cross is up 0.37% at 1.6277 facing the next hurdle at 1.6335 (high Aug.31 2011) followed by 1.6353 (MA21d) and 1.6455 (high Aug.29 2011).
On the downside, a breakdown of 1.6172 (MA10d) would bring 1.6145 (low Sep.14) and 1.6065 (low Sep.12).