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GBP/USD Consolidates Close to Pullback Lows but GBP Retains Firm Feel

GBP
MNI (London)
  • Corrective pullback away from Tuesday's high of $1.3952 extended to a low of $1.3830 through Wednesday's 1600GMT fix, recovered post fix to $1.3866 ahead of the close.
  • Early Asia extended this recovery to $1.3877(38.2% $1.3952-1.3830) before momentum faded and rate drifted off to $1.3840 into Europe.
  • Support $1.3830 ahead of $1.3818(76.4% 1.3776-1.3952) and $1.3805(38.2% 1.3567-1.3952). A break of $1.3800 to expose the Feb12 low at $1.3776.
  • Resistance remains at $1.3877, stronger between $1.3890/1.3905(50%-61.8% $1.3952-1.3830) . $1.3923(76.4%) stands in the way of a retest on $1.3952.
  • Despite GBP/USD pullback the GBP retains a generally firm feel with EUR/GBP holding below its key 10-dma (current Gbp0.8740).
  • UST yields, US fiscal stimulus headlines and Fed speak remain key drivers.
  • BOE Saunders speaks at 1100GMT.
  • US Weekly Jobless Claims, Housing Stats/Building Permits and Phila Fed at 1330GMT.
  • MNI Techs: GBPUSD remains below Tuesday's high of $1.3952. Dips are considered corrective with the pair maintaining a bullish tone following the recent resumption of the uptrend. Moving average studies are in a bull mode too and this reinforces current conditions. The focus is on $1.3998 next, Apr 26, 2018 high. On the downside, firm near-term support lies at $1.3776, Feb 12 low. A break would dent the current sentiment.
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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