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GBP/USD Makes Show Above $1.3900

GBP
MNI (London)
  • GBP/USD's corrective pullback away from Thursday's high of $1.3866 extended to $1.3776 in Europe morning trade Friday.
  • Strong demand emerged in early NY, drove rate back up to $1.3862 through the 1600GMT fix, closing the week around $1.3850.
  • Reflation trade again seen as the main driver with the USD pressured into the US holiday weekend (Presidents' Day)
  • Early consolidation in a holiday thinned Asian session (Lunar New Year) before fresh demand emerged to take rate through Friday's high and on to a fresh YTD high of $1.3903.
  • Rate maintained gains into Europe but was seen meeting some mild headwind supply which has eased it back to $1.3890.
  • COVID vaccinations in the UK have reached 15mln, well ahead of US and Europe, and sparking hopes for lock down easing.
  • IMM accounts now long GBP but positions described as not large.
  • A light data calendar for the UK Monday. Domestic focus this week on UK CPI Wednesday, Retail Sales, flash PMI's Friday.
  • Support $1.3850/40, $1.3800, $1.3776. Resistance $1.3903, $1.3922(1.618% swing projection 1.3866-1.3776), $1.3935 and $1.3976(1.618% swing 1.3758-1.3567).
  • MNI Techs: GBPUSD maintains a firmer tone and has hit a new cycle high today. Continued gains confirm a resumption of the underlying uptrend since March 2020. Moving average studies remain in a bull mode. Focus is on 1.3935 next, Apr 27, 2018 high. On the downside, firm support lies at 1.3567, Feb 4 low. A break required to highlight the top. Initial support at 1.3720, the 20-day EMA.
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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