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GBP Continues to Shine

GBP
MNI (London)
  • The early Europe break above technical resistance at $1.3665(76.4% $1.3710-1.3520) signalled GBP strength, earlier buollet suggested that this move exposes the area of recent highs between $1.3700/10.
  • Rate has since extended its recovery to $1.3698(Jan15 high), leaving the YTD high of $1.3710(Jan14) so far untouched.
  • This GBP strength also reflected by EUR/GBP as the cross broke below Gbp0.8880(an earlier noted break out point), with sales able to take rate through key support at Gbp0.8866/61 to Gbp0.8852.
  • Support in the cross now seen between Gbp0.8840/30, with the base of the 1.0% 10-dma currently coming through at Gbp0.8839.
  • Move seen aided by EUR/USD rejection away from its tech resistance at $1.2158(61.8% $1.2223-1.2054), possibly driven by positioning ahead of Thursday's ECB meeting.
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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