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Early GBP Strength Fades into NY Crossover

GBP
  • Some GBP weakness evident headed through the NY crossover, with EUR/GBP bouncing off the new multi-year low printed this morning at 0.8305. The moves puts GBP/USD back to flat, erasing much of the morning's outperformance.
  • Political uncertainty remains a focus, with UK PM Johnson due to give a statement on the now notorious Gray report that No.10 has now received. Expectations are now minimal, with journos speculating we'll get a summary very light on details.
  • Sell-on-rallies theme still evident in GBP/USD here - This follows the strong reversal off 1.3749, Jan 13 high. The pair has recently breached both the 20- and 50-day EMAs and a number of retracement levels, highlighting a bearish threat. The focus is on 1.3343, Dec 23 low and 1.3301, a Fibonacci retracement.

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