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GBP/USD Resumes Downleg Off March High

GBP
  • Latest pressure on GBP/USD prompts the pair to (just) resume the downleg posted off the Mar 8th recovery high - this puts prices at their lowest since Mar 07 and reflects the outperformance of Gilts amid quiet global bond markets.
  • 1.2712 marks weak intraday support (61.8% retracement for bounce off March 1st low) and a close below here would extend the sequence of lower lows to 6 of the past 7 sessions and narrow the gap with the bear trigger at 1.2519 - the Feb 5 low.
  • Outside of BoE risk this week, CPI is due on Wednesday and seen showing services CPI dropping to a new post-pandemic low at 6.0% - a 0.5ppts drop, which would be the fastest slowdown in the measure since the Aug'23 reading.

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