Cable surged to a 23-month peak of 1.9350 during the European morning, on "massive" selling of the USD. System and model-driven types were tipped as the prime movers. 1.9147-1.9166 was today's Asian session range. 1.9169 was yesterday's high. 1.9400, 1.9485, 1.9500, 1.9550 (Dec 2004, 12-year high) and 1.9600 are touted resistance levels north of 1.9350.
Sterling support points include 1.9300, 1.9290, 1.9275, 1.9200, and 1.9180 (Nov 10 high). Lows just under 1.9290 were notched following the 09:30GMT UK annualized Q3 GDP downward revision to 2.7%. At the start of this week, a 1.9300 GBP call option was bought at 6.125% for a February 8 MPC expiry date in GBP 250mn. Over half-a-yard of 1.9600 GBP calls roll off on February 2.
Exotic barriers reside at 1.9500, inclusive of the peak trigger of a Double No Touch option which is slated to expire next May. 1.9100 GBP call options expire a week today (Dec 1), as does an estimated GBP 500mn 2.0100 GBP call.
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