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$1.3800/10 Remains a Tough Upside Hurdle

GBP
MNI (London)
  • GBP/USD managed to make a show back above $1.3800, touched $1.3809, but then struggled to hold those gains, dropped back to $1.3751 in early NY. Rate tracked EUR/USD higher, edged to $1.3799 before drifting off to close the day at $1.3780.
  • Risk appetite continued to keep pressure on the USD, allowed GBP/USD to nudge back up to $1.3795 but again struggled to make any meaningful effort to break above $1.3800.
  • EUR/USD rejection away from $1.1990 saw GBP/USD fall away to $1.3765 ahead of the Europe open.
  • EUR/GBP remains within its 1.0% 10-dma envelope but holds toward the topside (current Gbp0.8719). A EUR/USD break of $1.1990/1.2000 would apply additional upside pressure.
  • GBP/USD support $1.3765 ahead of $1.3750, $1.3735. Resistance $1.3800, $1.3810-25 ahead of $1.3840(Apr07 high), $1.3860(76.4% 1.3919-1.3669).
  • A light data/event calendar in the UK Thursday. Focus on US Retail Sales, Weekly Claims, Empire MFG, IP and Cap.Ut.
  • MNI Techs: Despite recent gains, GBPUSD remains bearish. Firm resistance is unchanged at 1.3919, Apr 6 high. Note, a former bull channel drawn off the Nov 2, 2020 low also highlights resistance at 1.3978. Clearance of 1.3919/78 is required to strengthen a bullish argument. Attention is on key support at 1.3670, Mar 25 low. A clean break would resume the 1.5 month downtrend and open 1.3641, a Fibonacci retracement. Initial resistance is 1.3840.
MNI London Bureau | +44 203-586-2231 | john.webb@marketnews.com
BulletMarketsForeign Exchange Bullets
MNI London Bureau | +44 203-586-2231 | john.webb@marketnews.com
BulletMarketsForeign Exchange Bullets

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