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GBPUSD Extends Bounce From Multi-Month Lows

GBP
  • Cable rising to the best levels of the session in recent trade, helped by a moderate turn lower for the broader USD index and slightly more hawkish comments from Pill that don’t sound as though he is looking for an imminent cut at this juncture and BOE pricing modestly adjusting accordingly.
  • Price action extends the bounce from yesterday’s five-month lows of 1.2300 to around 90 pips.
  • Overall, the trend condition in GBPUSD remains bearish and last week’s extension plus Monday’s move lower, reinforces current conditions. Moving average studies are in a bear-mode set-up, reinforcing a bearish theme. Sights are on 1.2266, the Nov 14 2023 low. Initial firm resistance remains higher at 1.2524, the 20-day EMA.
  • CBI trends and business sentiment data due tomorrow, however, cable will likely pay more attention to the US GDP figures due Thursday.

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