Some of the market players suffered overnight due to a turnaround in USD Index on the back of the NY Fed factory survey (the first of the sentiment readings for the US manufacturing sector each month) which reported a jump in business conditions, and Barclays earnings surprise. Boosted risk sentiment later on caused further squeeze on EM universe and pushed XXX-JPY higher as well.

Cable,  after breaking 1.5725 resistance, looks bid at the moment due to  buying on dips around 1.5745-55 taking place on.  For those who’d like to trade Sterling on a day with a good chance of volatility in London session today ( Feb BoE Meeting Minutes, Jan Unemployment ,  I think 1.5815-1.5835 area is a convincing resistance ( 1.5818 is the 38.2% retrace of 1.6276 to 1.5536 drop and 1.5833 is the low print of 30/12/2009, ) in the 1.5555-1.5995 daily bullish channel to go short Cable with a tight SL at 1.5860,  targeting 1.5710 and 1.5645 on the downside.

A daily close above 1.5795 suggests a key reversal and first resistance appears around 1.5935-45 area.