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GBP Picks up Fresh Support Post UK GDP Data

GBP
MNI (London)
  • Brexit optimism provided some GBP with support into Europe trade, with the release of better than expected UK GDP data providing the added catalyst which allowed GBP/USD to extend its recovery off its Asia low of $1.3380/pre data release dip to $1.3388.
  • GBP strength has also taken EUR/GBP back below Gbp0.9100, marking a fresh intraday low of Gbp0.9085 (opening Asia Gbp0.9088), with the key technical 10-dma currently at Gbp0.9074, and Monday low at Gbp0.9070 moving within touching distance.
  • UK reported to have moved toward EU demands on fisheries and seen boosting hopes for a Brexit trade deal, but its not there yet. Talks continue.
  • International reaction to UK COVID virulent strain spread getting some relief on hopes for the Dover-Calais border restrictions close to easing.
  • GBP/USD resistance remains at and above $1.3450. Market conditions described as thin leaving market open to volatile headline reactions.
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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