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GBP/USD Edging Back Toward $1.41

GBP
MNI (London)
  • Recovery off Thursday's pullback low of $1.4006 extended to $1.4111 in early NY Friday on risk position covering into the weekend.
  • Rate settled between $1.4090-1.4105 through the NY afternoon and into the close.
  • Rate struggled to hold above $1.4100 in early Asian trade, eventually pressed back to $1.4078 on the back of COVID spread concern in certain Asian countries, the dampening in risk appetite saw JPY demand emerge with sales of GBP/JPY providing the weight.
  • Rate settled between $1.4080/90 through balance of the session and into Europe.
  • Support $1.4080/70, $1.4050, $1.4035/30, stronger into $1.4000.
  • Resistance $1.4110/15, $1.4128(76.4% $1.4166-1.4006), stronger $1.4150/65.
  • A light data/event calendar in the UK Monday. Domestic interest this week include Employment/Earnings data Tuesday, CPI Wednesday, Retail Sales and flash PMI's Friday.
  • MNI Techs: GBPUSD outlook remains bullish. The rate has recently cleared a number of resistance levels, reinforcing a positive theme and sights are set on the key resistance at 1.4237, Feb 24 high. A break of 1.4237 would strengthen a bullish case and importantly confirm a resumption of the broader uptrend that started in March 2020. On the downside, initial support is at Monday's intraday low of 1.3972, May 10 low.
MNI London Bureau | +44 203-586-2231 | john.webb@marketnews.com
MNI London Bureau | +44 203-586-2231 | john.webb@marketnews.com

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