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Break of GBP0.8600 Triggers Sharp GBP Spike

EURGBP
MNI (London)
  • Break of Gbp0.8600 in Asia said to have triggered strong sell interest (suggestions move triggered barrier interest at the figure), the move providing the lift in GBP/USD that took it above $1.4200 (BBG high $1.4237, RTRS high $1.4295, conditions described as very thin).
  • The drop in EUR/GBP also took the cross outside the base of its 1.0% 10-dma envelope (current Gbp0.8589), the rate trading to a low of Gbp0.8541 before it recovered to Gbp0.8585.
  • Consolidation seen through balance of the Asian session between Gbp0.8575/85 before fresh GBP demand emerged to press rate back to Gbp0.8563.
  • Move now exposes the base of the 2.0% 10-dma envelope, currently at Gbp0.8502. However, rate tends not to like being outside the 1.0% envelope for too long but GBP currently enjoying widespread demand interest so difficult to buck current trend.
  • Support Gbp0.8540, Gbp0.8520 ahead of Gbp0.8500. Resistance Gbp0.8585/90, Gbp0.8600.
  • Press reports suggesting a possible speeding up of lock down easing denied by government but traders seem to like grabbing on to positive GBP news.
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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