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Pivots $1.40 Ahead of UK Employment Data

GBP
MNI (London)
  • GBP/USD touched a low of $1.3810 in Asia Monday before fortunes reversed and GBP rallied through the day.
  • GBP/USD pushed up to $1.3993 before meeting headwinds ahead of $1.4000. Talk had suggested a $1.36-1.40 DNT option structure in play, defence of $1.40 providing the counter.
  • EUR/GBP dropped back from Gbp0.8672 to Gbp0.8589 before rate settled back above Gbp0.8600 through the balance of the session and into early Asia. Cross slowly extended correction to Gbp0.8622, meeting resistance around its 50-dma. Cross is now back below its 10-dma which supports a GBP buoyant outlook.
  • GBP/USD dipped to $1.3976 in early Asia before bouncing back to take out the $1.4000 level , the rate touching a high of $1.4008 before settling around $1.4000 into Europe.
  • GBP/USD has struggled to make headway above $1.4000 since easing away from its YTD high of $1.4237(Feb24), with the Mar04 high at $1.4017, and $1.4020(61.8% $1.4237-1.3669) providing next resistance. Break to open a move toward $1.4050 ahead of $1.4074(1.618% swing 1.3919-1.3669) Support $1.3976, $1.3950/40.
  • Europe/London open sees release of UK Employment data at 0600GMT, median Employment change -145k 3m/3m, ILO Unemployment 5.0%.
  • MNI Techs: GBPUSD topping key resistance at 1.3919, Apr 6 high has markedly strengthened the S/T bullish theme and exposes the former bull channel base drawn off the Nov 2, 2020 low. The line intersects at 1.4006 and is under pressure as Cable extends this week's rally. Note too resistance at 1.4017, Mar 4 high. A break of this 1.4006/17 zone would signal scope for a stronger climb. Support is at yesterday's low of 1.3810.
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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