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GBP/USD $1.4052 in Asia, Europe Takes it Back Under $1.4000

GBP
MNI (London)
  • The bounce off last Wednesday's low of $1.3830 saw GBP/USD find the momentum to take it through $1.4000, pushing up to $1.4036 in early NY Friday before drifting back, finding support at the $1.4000 into the close.
  • Early consolidation in Asia around $1.4020 before risk sentiment was provided a boost by the positive reaction in AUD and NZD to ratings reports, the added demand taking GBP/USD on to $1.4052.
  • However, momentum quickly faded and rate dropped back to $1.4012. Rate managed to edge back to $1.4027 but came under fresh downside pressure into Europe which has seen rate drop back below $1.4000 (low $1.3984)
  • A light data calendar for the UK Monday with main attention on PM Johnson's Road Map for an easing in COVID restrictions (measures to be presented to Parliament around 1530GMT, press announcement 1900GMT).
  • Weekend reports suggest more than a half of UK employers plan to recruit, lay offs easing (CIPD/Adeco survey).
  • Support $1.3967(38.2% $1.3830-1.4052) ahead of $1.3952 and $1.3915/00. Resistance $1.4052, $1.4071(4-mth bull channel top).
  • BOE Vlieghe pre published speech 1800GMT.
  • US fiscal stimulus headlines, Fed speak (Fed Powell Tue/Wed; Fed Brainard, Clarida speak Wednesday) UST yields and month-end remain key drivers.
  • MNI Techs: GBPUSD rallied further Friday, clearing the 1.4000 handle as the strong uptrend extends. A bullish tone remains clearly intact and Cable maintains a bullish price sequence of higher highs and higher lows. Moving average studies are in a bull mode too. The focus is on 1.4082 next, a Fibonacci projection. On the downside, key near-term support has been defined at 1.3830, Feb 17 low.
MNI London Bureau | +44 203-586-2231 | john.webb@marketnews.com
BulletMarketsForeign Exchange Bullets
MNI London Bureau | +44 203-586-2231 | john.webb@marketnews.com
BulletMarketsForeign Exchange Bullets

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