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GBP/USD Picks Up Fresh Demand Into Europe

GBP
MNI (London)
  • Release of strong UK flash PMI set on Friday saw GBP/USD extend its recent recovery to $1.4234 before momentum faded, the corrective pullback influenced by slippage in EUR/USD as this rate reacted to dovish comments from ECB Lagarde.
  • A fading in risk appetite, along with position adjustments into the weekend, acted to boost the USD, getting an added lift from release of stronger than forecast US PMI data.
  • GBP/USD touched a low in NY of $1.4141 before it settled between $1.4150/60 into the close.
  • Early Asia edged GBP/USD to $1.4165 before it turned lower on another wave of risk fading which pressed rate to $1.4137.
  • Buyers were seen emerging into the dip in opening Europe which has taken rate back to $1.4157.
  • Resistance seen at $1.4175/85 ahead of $1.4200, a break to expose recent highs at $1.4220 ahead of $1.4234.
  • Support $1.4137/32 ahead of $1.4120 and $1.4100.
  • BOE Bailey, Cunliffe, Haldane and Saunders speak at 1430GMT
  • Whitsun in some European centres. Fed speak in focus into the afternoon.
  • MNI Techs: The GBPUSD outlook remains bullish. Price action recently cleared a number of resistance levels, reinforcing a positive theme and sights are on resistance at 1.4237, Feb 24 high. A break would reinforce a bullish case and 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 pullback.
MNI London Bureau | +44 203-586-2231 | john.webb@marketnews.com
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MNI London Bureau | +44 203-586-2231 | john.webb@marketnews.com
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