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GBP Recovery Efforts Remain Soggy

GBP
MNI (London)
  • Pullback away from last Wednesday's high of $1.4001 extended Tuesday to a low of $1.3814 before it recovered back to hold around $1.3850, though late dip saw it ease to $1.3836 at the close.
  • GBP picked up mild bid interest in Asia, which took it to $1.3861, local traders pinned interest on reaction to press report that the UK Govt will set out plans for simple and nimble post-Brexit subsidies(FT). England football win vs Germany also suggested to have put a warmer light on the pound, although this interest quickly faded. Rate settled back around $1.3850 into Europe.
  • UK GDP 0600GMT, median -1.5%qq, -6.1%yy, and Current Account balance .
  • Month-end dynamics remain in play, models suggest USD mild USD sales to be seen at today's fixings, but positioning ahead of Friday's NFP could provide a counter, market hoping for a strong number and effect on the US taper timetable.
  • GBP/USD support $1.3836, $1.3814/06(Jun29 low/76.4% $1.3669-1.4248), a break of $1.3800 to expose $1.3787(Jun21 low) ahead of $1.3760/50.
  • Resistance $1.3861, $1.3885/1.3900 ahead of $1.3940/50.
  • MNI Techs: Bears still appear to be in charge following recent weakness that resulted in the break of S/T support levels at the 50-day EMA and 1.4006, May 13 low. Cable is once below the 100-DMA, reinforcing current bearish conditions. Scope is seen for an extension lower towards 1.3717, Apr 14 low. On the upside, initial firm resistance is seen at 1.4001, Jun 23 high. The bear trigger is 1.3787, Jun 21 low.
MNI London Bureau | +44 203-586-2231 | john.webb@marketnews.com
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MNI London Bureau | +44 203-586-2231 | john.webb@marketnews.com
BulletMarketsForeign Exchange BulletsHomepage

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