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GBP/USD's Two-Day Bounce Still Deemed Corrective

GBP
  • Greenback sees some very moderate slippage in recent trade, aiding GBP/USD to new daily highs and helping EUR/USD narrow the gap with earlier highs at 1.0773.
  • GBP/USD's two-day rally puts spot back toward the Monday high of 1.2640 as price re-enter the early 2024 range and erase the range breakout posted earlier in the week. We noted yesterday that FX options markets had been generally quiet, however GBP hedging was an exception - upside demand was evident via decent sized calls trading with 1.2565, 1.2660 and 1.2850 strikes.
  • Nonetheless, GBPUSD bearish conditions remain intact, with the current recovery deemed corrective.

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