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Cable Buoyant, But Needs Break of $1.32 to Boost Upside Potential.

GBP
MNI (London)
  • Opens Europe with an underlying buoyant tone, GBP/USD applying pressure on $1.3200 at writing.
  • Biden Bounce has provided a general risk on tone via global stock markets, in turn placing pressure on the USD.
  • Asian traders have suggested that a break of $1.3200 could attract stronger demand to emerge.
  • EUR/GBP currently hugging its key 10-dma(current Gbp0.9017) awaiting directional impetus.
  • Sterling buoyant despite PM Johnson comments on current Brexit trade negotiations. However, with Biden as president-elect suggestions are that the UK's stance might be softened as we head toward the Nov15 deadline(Biden concern noted on the Irish border).
  • Internal Markets Bill returns to the Lords today, vote expected early afternoon, Johnson facing a heavy defeat.
  • EU Barnier resumes talks with UK Frost today, headlines to be watched,.
  • MNI Techs: Cable above former key resistance at 1.3177, Oct 21 and Nov 6 high. Break above this level signals scope for further gains with attention turning to 1.3292 next, 76.4% of the Sep 1 - 23 sell-off. Initial support lies at Friday's 1.3093 low.
MNI London Bureau | +44 203-586-2231 | john.webb@marketnews.com
MNI London Bureau | +44 203-586-2231 | john.webb@marketnews.com

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