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Bulls Fail To Force Clean Break Above 20-Day EMA Despite Move Lower In Cable

EURGBP

Yield differential and relative central bank pricing moves have pressured GBP in the wake of this morning’s UK labour market data.

  • BoE-dated OIS briefly priced 75bp of ’24 cuts vs. ~69bp at yesterday’s close.
  • While cable has broken through initial technical support GBP bears are unable to push EUR/GBP meaningfully above the 20-day EMA (GBP0.8546), leaving the bearish EUR/GBP technical trend intact.
  • A break of the 20-day EMA would expose key resistance at GBP0.8578.
  • HSBC have issued a long EUR/GBP recommendation in the wake of the data.
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

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