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Free AccessEdging Back Toward $1.3900
- GBP managed to play partial catch up on EUR/USD's stronger recovery, GBP/USD edging above $1.39 to $1.3929 in early Europe before the USD performed a general recovery into NY.
- EUR/GBP off recovery highs of Gbp0.8720 but remains above its key technical 10-dma, currently coming through at Gbp0.8668.
- Rate eased to $1.3866 before recovering through the NY afternoon to $1.3908, closing the day at $1.3900.
- USD/JPY demand in Tokyo led to another recovery phase for the USD, eased GBP/USD down to $1.3875 before USD/JPY eased post BOJ which allowed GBP/USD to nudge back to $1.3897 into Europe.
- UK vaccine roll out has led to improved economic recovery outlook but with PM Johnson facing political problems (Scottish election also approaching) is seen countering GBP gains.
- Support $1.3865/50($1.3864-49 61.8%-76.4% $1.3824-1.3929) ahead of $1.3836/24.
- Resistance $1.3902, $1.3929, $1.3938(61.8% 1.4009-1.3824), $1.3950/65.
- UK CBI Retail Sales at 1000GMT provides data interest in an otherwise thin calendar. Focus on Wednesday's FOMC.
- MNI Techs: GBPUSD is unchanged. The pair traded lower last week following a failure at 1.4009, Apr 20 high. This pullback means that recent gains stalled at the former bull channel base drawn off the Nov 2, 2020 low. A break of 1.4009 is required to reinstate a bullish theme. This would open 1.4103, a Fibonacci retracement. Short-term support has been defined at 1.3824, Apr 22 low. The key bear trigger lies at 1.3669, Apr 12 low.
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Why MNI
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.