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GBP/USD Narrows in on More Notable Support

GBP
  • To touch on GBP again, the latest sell-off in GBP/USD aided by another uptick in activity and volumes, with cumulative daily volumes now above average for this time of day thanks to pick-up in selling from ~1245 London time.
  • Spot has now eased well through support at 1.2680 and is narrowing in on more notable downside levels at 1.2651 and 2539, the 20- and 50-day EMA values respectively.
  • Move in the currency mirrors the retreat in BoE-dated OIS terminal pricing, which now sits closer to 6.20% in policy rate terms after flirting with 6.30% earlier today.
  • BoE's Bailey in focus - speaking in just under 90 minutes team alongside the heads of ECB, Fed and BoJ.

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