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TEST, PLEASE IGNORE

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$1.3398/Weekend Brexit Trade Talks Hold Key For Upside Progress

GBP
MNI (London)
  • GBP/USD again met stiff headwinds ahead of $1.3400 Thursday, the rate retesting the recent high of $1.3398 in Asia, whilst early Europe stalled at $1.3397 before rate retreated.
  • Rate sank back to $1.3322, following the failure to advance above $1.3400, and before fresh demand/general USD sales emerged.
  • GBP/USD recovered in a US holiday thinned trading session to $1.3363 in post fix trade, settling around $1.3355 into the close.
  • Early Asia touched a low of $1.3345 then consolidated in early Tokyo around $1.3355 before the USD came under fresh pressure (USD/JPY breaking under Y104.00) which allowed rate to edge to $1.3377 ahead of the European open.
  • GBP/USD recovery trailed EUR/USD and allowed EUR/GBP to nudge back to its key 10-dma(current Gbp0.8925) which contained. Whilst rate holds below this line seen keeping GBP's underlying buoyancy in place. A break and clear would signal a warning over sterling strength.
  • Support $1.3350/45, $1.3325/20, stronger into $1.3300. Resistance $1.3380, stronger into $1.3400, then $1.3420.
  • A light data calendar in the UK and US, the latter likely to work skeleton staff after Thursday's holiday with bond markets due to close early.
  • Brexit trade negotiations remain key for sterling direction, EU Barnier travels to London for face-to-face talks this weekend.
  • Prelim models suggest Monday month-end likely to see USD sales at the fixes.
  • MNI Techs: GBPUSD is unchanged and trading closer to recent highs. The outlook remains bullish. A break of Monday's high at 1.3398 would confirm a resumption of the current uptrend to pave the way for a climb towards key resistance at 1.3482, Sep 1 high. On the downside, firm support is seen at 1.3196, low Nov 19. A breach of this level is required to dent the bullish mood and risk a deeper corrective sell-off.
MNI London Bureau | +44 203-586-2231 | john.webb@marketnews.com
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MNI London Bureau | +44 203-586-2231 | john.webb@marketnews.com
BulletMarketsForeign Exchange Bullets

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