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Free AccessGBP Remains on the Back Foot
- GBP retains a soggy feel, with GBP/USD further extending its corrective pullback away from Tuesday's post Easter high of $1.3919 to $1.3708 into European trade Friday.
- Main drive seen via the upside correction in EUR/GBP, the cross extending its bounce from Monday's YTD posted low of Gbp0.8472, the rate breaking out the topside of its 1.0% 10-dma envelope (current Gbp0.8652) to Gbp0.8685 at the this morning's Asia open. Talk remains of real money closing of EUR funded positions for EUR demand interest, with GBP also bruised by AZ vaccine concerns and rise in violence in N.Ireland.
- GBP/USD support at $1.3706(Mar30 low), a break of $1.3700 to expose the Mar25 low at $1.3670, the Feb05 low at $1.3663 close behind. Resistance $1.3751 ahead of $1.3795/1.3810.
- Halifax house price data due at 0730GMT in an otherwise light UK calendar.
- MNI Techs: GBPUSD is consolidating. The pair found resistance this week at 1.3919, on Apr 6. The failure at recent highs highlights the importance of resistance relating to the former bull channel drawn off the Nov 2, 2020 low - the channel base was cleared Mar 23. The base intersects at 1.3940 and a strong break higher is required to strengthen a bullish argument. Key support and the bear trigger is 1.3670, Mar 25 low.
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Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.