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GBP/USD Retains a Buoyant Feel

GBP
MNI (London)
  • Wednesday's break of $1.3665(76.4% $1.3710-1.3520) provided the impetus to take rate up to retest the Jan20 high at $1.3710, extending the YTD high to $1.3718 in the process.
  • Same time EUR/GBP broke support at Gbp0.8880, the added downside momentum took it through support at Gbp0.8866/61 before finding support around the base of its 1.0% 10-dma envelope at Gbp0.8838 (by time the envelope base has eased to Gbp0.8821 at writing).
  • Move was aided by general pressure on the EUR though this faded through the NY session.
  • GBP/USD touched a pullback low of $1.3624 into the 1600GMT fix before recovering, meeting resistance at $1.3660.
  • Asia provided an added upward thrust, lifting rate through $1.3660 with demand edging it on to $1.3706 into Europe.
  • Support $1.3624, with stronger support noted between $1.3615/1.3595. The early move through $1.3696(76.4% $1.3718-1.3624) provides an added boost for cable, a break of $1.3718/20 expose $1.3750, with $1.3773/76 providing a technical target behind(May01 '18 high/1.618% swing projection of $1.3718-1.3624).
  • CBI Trends provide domestic data interest at 1100GMT. Focus on ECB MonPol/Lagarde press conference, with US weekly jobless, housing and Phila Fed the interest into the afternoon.
  • MNI Techs: GBPUSD yesterday probed resistance at 1.3710, Jan 14 high to hit a new multi-year high at 1.3718. From a trend perspective, the outlook remains bullish. Wednesday's rally maintains the bullish price sequence of higher highs and higher lows, opening 1.3773, the May 1 2018 high. To the downside, near-term support has been defined at 1.3520, Jan 18. A breach would signal scope for a deeper short-term sell-off and expose a key support at 1.3452, Jan 11 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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