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GBP/USD Opens Europe Just Off Fresh YTD High at $1.3752

GBP
MNI (London)
  • Impressive bounce back in GBP Tuesday, looking at the chart would suggest an 0800GMT fix inspired reversal as GBP/USD bounced off an extended low of $1.3610. Rally extended through the NY open to a high of $1.3744, holding just shy of the YTD high of $1.3746(Jan21).
  • GBP/USD dipped back to $1.3718 through the 1600GMT fix, recovered into the close though move was capped around $1.3740.
  • Asia picked up the GBP demand baton and edged rate to a fresh YTD high of $1.3752 though move failed to trigger any stronger demand.
  • Rate eased to $1.3723 on general USD demand before rallying back to $1.3748 but was seen meeting some headwinds into Europe.
  • Support $1.3723/18 ahead of $1.3698(38.2% $1.3610-1.3752). A break exposes $1.3681(50%), $1.3664(61.8%), $1.3644(76.4%) ahead of stronger interest into $1.3610/00.
  • A clear of the $1.3760 now seen needed to boost upside potential, a break to expose the $1.3800/30 area, though expect interim resistance to emerge into $1.3770/80(MNI Techs highlights $1.3773 May01, 2018 high-see below).
  • Might be worth watching for any action around this morning's 0800GMT fix. Today's month end value may prompt some US corporate USD buying though a good part of that seen Monday.
  • A light data calendar for the UK Wednesday with tonight's FOMC providing the main interest(no change of course expected).
  • MNI Techs: GBPUSD staged a decent rally yesterday, reinforcing the underlying uptrend. The pair has today probed resistance 1.3746, Jan 21 high to maintain the bullish price sequence of higher highs and higher lows. Attention is on 1.3773 next, May 1 2018 high. Near-term firm support has been defined at 1.3520, Jan 18 low. A breach would signal scope for a deeper short-term sell-off and expose 1.3452, Jan 11 low. Initial support is at 1.3610, yesterday's 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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