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GBP: Firmer Global Stocks Underpin GBP Strength

GBP
  • GBP outperformance early Friday extends on the latest run higher - as mentioned above the initial resistance at 1.2899 (a retracement level for the downleg off the cycle high) has given way, helping trigger some decent volumes via futures markets. 
  • UK retail sales not the trigger for this morning's GBP strength (particularly as BoE pricing holds the recent range), with the currency more closely correlated to risk sentiment and global equity futures - and the better start for US futures will be proving supportive here. 
  • Cross-selling via EUR/GBP also evident, as the price continues to unwind the overbought condition that resulted from the run-up to 0.8625. The 100-dma undercuts as support at 0.8511.

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