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GBP: GBP/USD Builds Well Off Lows on Decent Futures Interest

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GBP/USD building well off the overnight pullback lows of 1.3036, with volumes picking up across both the jobs data this morning as well as the European open. Cumulative futures activity now sits just over 30% ahead of average for this time of day. The 20- and 50-day EMAs are converging to form layered resistance between 1.3104-51 - clearance here is needed to firm any recovery - which could be triggered by an upside surprise in tomorrow's inflation print and the read-through for year-end BoE pricing (currently ~35bps of cuts showing in OIS by Dec-31).

  • While spot is recovering, the broader outlook remains more fragile, and weakness through 1.3022 would resume the primary downtrend and open losses toward 1.2951.
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GBP/USD building well off the overnight pullback lows of 1.3036, with volumes picking up across both the jobs data this morning as well as the European open. Cumulative futures activity now sits just over 30% ahead of average for this time of day. The 20- and 50-day EMAs are converging to form layered resistance between 1.3104-51 - clearance here is needed to firm any recovery - which could be triggered by an upside surprise in tomorrow's inflation print and the read-through for year-end BoE pricing (currently ~35bps of cuts showing in OIS by Dec-31).

  • While spot is recovering, the broader outlook remains more fragile, and weakness through 1.3022 would resume the primary downtrend and open losses toward 1.2951.