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GBP Firm Into Europe

GBP
MNI (London)
  • GBP/USD corrective pullback away from Thursday's posted YTD high of $1.3746 extended to $1.3636 in early NY trade Friday before fresh demand emerged.
  • Pressure on the GBP also saw EUR/GBP extend its recovery away from the base of its 1.0% 10-dma envelope to make a show above its key 10-dma, though significantly it closed the week below(GBp0.8900).
  • GBP/USD recovered to $1.3693 through the NY afternoon, closing the week at $1.3686.
  • Apart from an opening Asia post low of $1.3670 rate consolidated the early part of Asia between $1.3675/90 before GBP demand emerged, Asian traders highlighted sales of EUR/GBP, which pushed rate back above $1.3700, edging onto $1.3723 into Europe(breaking the 76.4% retrace of the $1.3746-1.3636 pullback). A sustained break here exposes the YTD high at $1.3746.
  • EUR/GBP posted an early high of Gbp0.8901 before rate drifted off to Gbp0.8877(back below the 10-dma, current Gbp0.8889).
  • Light data calendar in UK Monday, focus on Tuesday Employment Report.
  • GBP/USD support $1.3670, $1.3636/24, stronger into $1.3600. Resistance $1.3720/23, $1.3740/50, $1.3780.
  • MNI Techs: GBPUSD traded to a new multi-year high at 1.3746 last week. Outlook remains bullish. Sequence of higher highs and higher lows remains in place reinforcing bullish trend. Attention on 1.3773 next, the May 1 2018 high. To the downside, near-term firm support has been defined at 1.3520, Jan 18. A breach would signal scope for a deeper short-term sell-off and expose a key support at 1.3452, Jan 11 low. Initial support is 1.3605, the 20-day EMA.
MNI London Bureau | +44 203-586-2231 | john.webb@marketnews.com
BulletMarketsForeign Exchange Bullets
MNI London Bureau | +44 203-586-2231 | john.webb@marketnews.com
BulletMarketsForeign Exchange Bullets

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