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Cable Bounce Needs to go Further to Change Outlook

GBP
  • GBPUSD improving to the best levels of the session at the NY crossover - further chewing through yesterday's losses in the pair. 1.2437 is being tested - the 38.2% retracement for the Weds - Thurs pullback, beyond which 1.2451 is the next intraday target.
  • Options interest Friday is most notable into 1.25, at which £481mln notional is set to roll-off at today's NY cut.
  • Despite the modest bounce Friday, GBPUSD maintains a softer tone more broadly after Thursday trade resulted in a test of the 50-day EMA at 1.2408.

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