Free Trial

Despite the pullback in GBP from the recent...>

CABLE: Despite the pullback in GBP from the recent cycle highs so far Monday,
sentiment towards GBP has become increasingly bullish, with GBP/USD 1m risk
reversals touching the best levels since early 2018 as markets further price out
the likelihood of a disruptive exit from the European Union. Weekend press
reports were supportive, continuing to talk up the probability that the
government could clinch a cross-party approved Brexit deal with the opposition
-Friday's close above the 1.3108 50-dma played into the hands of GBP bulls, with
1.32 in sight despite the modest pullback in prices Monday. Support kicks in at
the $1.3063 level (38.2% Fib of recent rise) and the 100-dma at $1.2992.
-This week is busy for UK data, with prelim Q1 GDP due on Friday alongside
industrial and manufacturing production data.
-GBP volumes should return to near normalcy tomorrow as London returns following
the early Spring Bank Holiday in the UK. Unsurprisingly volumes have been lower
than expected, with GBP/USD options seeing just over half the activity of a
normal session so far. 
MNI London Bureau | +44 203-865-3809 |
MNI London Bureau | +44 203-865-3809 |

To read the full story



MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.