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GBP/USD Holds Gains Ahead of UK Retail Sales. Focus on Flash PMI's

GBP
MNI (London)
  • Recovery off Wednesday's pullback low of $1.3830 picked up momentum through Thursday's 0800GMT fix, the rally able to move through the recent high of $1.3952 in early NY before posting a fresh YTD high at $1.3986.
  • Failure to push ontoward $1.4000 saw rate drop back to $1.3927, meeting support placed just ahead of its 38.2% retrace ($1.3830-1.3986) at $1.3926.
  • Dip attracted fresh demand that lifted it back to $1.3980 ahead of the close($1.3974).
  • Early consolidation around $1.3970 in Asia before rate was pressed back to $1.3952 only to again meet willing buyers that have edged it to $1.3984 ahead of Europe.
  • GBP retains a buoyant tone as markets turn attention toward UK Retail Sales at 0700GMT (median -3.0%mm, -0.8%yy; ex-auto -2.1%mm, 2.7%yy). Flash PMI's to gain main attention at 0930GMT (median Mfg 53.1, Svcs 42.0, Comp 42.6). CBI Trends due at 1100GMT.
  • GBP/USD resistance $1.3986, $1.3998(Apr26 2018 high-see MNI Techs below) with weak talk suggesting possible barrier interest at $1.4000(no confirmation).
  • Rate has been tracking the topside of its 1.0% 10-dma envelope, currently coming through at $1.4005. A 1.618% swing projection, of the move down from $1.3952 to $1.3830 seen at $1.4027 ahead of Apr23 2018 high at $1.4031.
  • Support $1.3950, $1.3927/26, more into $1.3900, stronger between $1.3890/70.
  • MNI Techs: GBPUSD rallied once again yesterday and topped the Tuesday high of 1.3952, taking out key resistance on the move higher. A bullish tone remains intact and Cable maintains a bullish price sequence of higher highs and higher lows. Moving average studies are in a bull mode too. Focus on $1.3998 next, Apr 26, 2018 high and $1.4031, Apr 23 high. On the downside, firm near-term support lies at 1.3776, Feb 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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