Following the marathon talks held in Brussels over the weekend, European leaders appear to have addressed some past disagreements to hopefully reach common ground on the core issues

<p>GBP/USD Range: 1.6478 – 1.6508 Support: 1.6350 Resistance: 1.6600 Sterling continues to perform in the risk positive environment seen last night and with no UK […]</p>

GBPUSD
GBP/USD
Range: 1.6478 – 1.6508
Support: 1.6350
Resistance: 1.6600
Sterling continues to perform in the risk positive environment seen last night and with no UK data today the pound will be driven by data in the Euro zone and US. With cable struggling above 1.6600 I think we need to mention the usual month end demand for euro/£ as we approach month end. If equity markets can hang on to these rebound gains seen over the past few trading session then traders may expect the demand for the cross to be substantial as many could underweight their rebalancing from the demise we experienced in equities earlier in the month.
EURUSD
EUR/USD
Range: 1.5937 – 1.5999
Support: 1.6000
Resistance: 1.5950
Cable closed in New York at 1.5964, off session highs of 1.5974, with the rate marked down into early Asia to 1.5934. The rate continued to ease lower, marking overnight lows at 1.5915 before picking up fresh demand interest as risk was given a boost on positive Asian equity markets, along with commodities. Cable traded through Friday to extend its recent recovery to 1.5985, with the rate holding a firm tone into early Europe. Offers now seen in place between 1.5990-1.6000, with 1.6010 offering a near term target. Above here the rate can push on towards 1.6040-1.6050 ahead of 1.6080-1.6085. Support noted at 1.5950 ahead of 1.5935-1.5930 and 1.5915.
Gold
Range: 1,635.87 – 1,657.42
Support: 1,633.00
Resistance:1,665.00

 

Gold rallied on Friday after support ahead of the 1,600 level held firm on Thursday. A weaker dollar and USD Index on the back of optimism ahead of the weekend summit and ongoing discussions expected to culminate on Wednesday/Thursday with answers to the EU debt crisis has prompted a recovery in gold. Gold opened at 1,620.75 and after an early dip in Asia to 1,611.85 picked up steadily, hitting highs of 1,648.70 in New York before closing the week at 1,641.60. Asian markets have been relatively steady at the start of this week’s trading, with a range of 1,635.60 to a recent high of 1,651.90. Support is now seen at 1,633 and 1,612 with resistance at 1,665 and 1,677.

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