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GBP/USD Above $1.3900 but Recovery Continues to Trail EUR/USD

GBP
MNI (London)
  • GBP/USD recovery off last Thursday's low of $1.3824 continues to trail EUR/USD's stronger correction, consequently sees EUR/GBP back above its technically key 10-dma.
  • GBP/USD managed to mark an initial recovery high of $1.3895 into early NY trade Friday, knocked back to $1.3836 before it pushed back to $1.3890, closing the week at $1.3875.
  • Early consolidation within a basic $1.3870/80 range before a dip to $1.3865, in a USD/JPY led USD move, before rate picked up stronger demand that took it to $1.3908, holding above $1.3900 into Europe.
  • Support $1.3900, $1.3875/72(50-dma/55-dma) ahead of $1.3865, stronger between $1.3835/24. Resistance $1.3908, $1.3917(50% 1.4009-1.3824), $1.3938(61.8% 1.4009-1.3824) ahead of $1.3950/55 ($1.3965 76.4%).
  • A quiet UK calendar this week with main focus on FOMC Wednesday, month-end approaching Friday.
  • MNI Techs: GBPUSD traded lower last week following a failure at 1.4009, Apr 20 high. This pullback means that recent gains stalled at the former bull channel base drawn off the Nov 2, 2020 low. A break of 1.4009 is required to reinstate a bullish theme that would open 1.4103, a Fibonacci retracement. Short-term support has been defined at 1.3824, Apr 22 low. The key bear trigger lies at 1.3669, Apr 12 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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