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GBP/USD Makes Show Under $1.4100 but Retains Buoyant Feel

GBP
MNI (London)
  • GBP/USD recovery off Tuesday's low of $1.4116 extended to $1.4176 in NY Wednesday only to retreat through the balance of the session to a low of $1.4112 in general USD demand prompted by month-end dynamics (Wednesday traded for month-end value May28, US and UK holiday Monday May31)
  • Asia continued the theme, pressed GBP/USD through $1.4100 to $1.4092 (as USD/JPY lifted to Y109.20) before recovering to $1.4119 ahead of Europe.
  • Support into $1.4090, stronger between $1.4080/70 then $1.4050.
  • Resistance $1.4120/26, $1.4145/55 ahead of $1.4180/1.4200.
  • Former adviser Dominic Cummings' damning comments on Govt handling of the COVID pandemic only caused minimal damage.
  • BOE Vlieghe (dove) speaks at 1100GMT.
  • US GDP, Core PCE, Weekly Jobless Claims, Durable Goods 1230GMT, Pending Home Sales 1400GMT.
  • Fed officials continue to ease taper talk into comments.
  • MNI Techs: GBPUSD, while slightly weaker, remains in consolidation mode. The outlook is unchanged and is bullish. Sights are on 1.4237, Feb 24 high and the key bull trigger. A break would reinforce a bullish case and importantly confirm a resumption of the broader uptrend that started March 2020. On the downside, initial firm support is unchanged at 1.4006, May 13 low where a break would suggest scope for a deeper corrective pullback.
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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