Free Trial

Bears Retesting $1.2700 After Wednesday Recovery

GBP

Much the same as what we have flagged for EUR/USD, yield differentials seem to weigh on cable, dragging the rate a little lower on the day, with bears testing $1.2700.

  • This comes after yesterday’s recovery from lows, which saw the cross close more than 100 pips off its session base.
  • Technically, GBP/USD traded lower Wednesday and showed at a new pullback low of $1.2615, briefly piercing support at $1.2621, the Aug 14 low and the short-term bear trigger. A meaningful breach of this level would confirm a resumption of the downtrend and open $1.2591, the Jun 29 low and an important support. On the upside, key short-term resistance is unchanged at $1.2819, the Aug 19 high. Clearance of this level would signal a possible reversal.
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.