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GBP/USD Asia Recovery Knocked Back Into Europe

GBP
MNI (London)
  • GBP demand emerged into Monday's 0800BST fix which acted to take GBP/USD to an extended recovery high of $1.3847 into early NY. This demand also took EUR/GBP through recent low of Gbp0.8533 to a low of Gbp0.8506.
  • GBP saw a reversal of fortunes in NY, month-end value prompted US corporate USD demand, which along with a rejection away from suggested barrier interest at Gbp0.8500, saw GBP/USD ease back to $1.3756, whilst the cross edged back above Gbp0.8550.
  • GBP/USD performed a slow recovery through Asia, the rate edged to $1.3783 before it met some headwinds into Europe.
  • Rising UST yields have provided some general buoyancy for the USD, traders watching USD/JPY as it holds toward the Y110.00 level.
  • GBP/USD support seen at $1.3760/50 ahead of $1.3738(61.8% $1.3670-1.3847) and $1.3712(76.4%). Resistance $1.3847/50, $1.3875(61.8% $1.4001-1.3670).
  • A light data calendar for the UK Tuesday.
  • MNI Techs: GBPUSD maintains a bearish tone despite recent gains. Last week, the pair cleared its bull channel base from the Nov 2, 2020 low. Furthermore, price also traded through the 50-day EMA and a former key support at 1.3779, Mar 5 low, triggering an important short-term reversal. The focus is on 1.3663 next, Feb 5 low. On the upside, the former channel base at 1.3844 provides an initial firm resistance.
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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