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Cable Slips Below Pre-Services PMI Level, Weakest G10 CCY

GBP
  • The stubborn greenback bid remains evident in currency markets amid the sharp turnaround for major equity indices throughout Thursday’s US trading session.
  • Despite the USD index only rising 0.15% as of writing, GBP is showing some notable weakness relative to its G10 counterparts.
  • Cable has now slipped below the pre-services PMI level of 1.2016 and has narrowed the gap with the week’s lows at 1.1987. There are no levels of note below here until 1.1915, the Feb 17 low.
  • The broader view suggests recent weakness is reinforcing a S/T bearish theme and signals scope for a continuation. A break of 1.1842 would highlight a potential trend reversal and a double top. Firm resistance is 1.2265, Feb 3 high.

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