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Recovering into UK Retail Sales. Focus Then on Flash PMI's

GBP
MNI (London)
  • GBP pressed lower through Thursday trade, GBP/USD extending its corrective pullback away from recent high of $1.4009 (the rate again meeting thin air above $1.4000), while EUR/GBP moved back above its technically key 10-dma at Gbp0.8662.
  • Move lower was in play as reports that US Biden would raise capital gains tax provided a general knock to risk and provided the USD with an added lift.
  • GBP/USD traded to a low of $1.3824 before closing the day at $1.3840.
  • Recovery extended in Asia though only managed to edge rate on to $1.3866 with attention on the release of UK Retail Sales at the Europe open (median 1.5%mm, 3.5%yy; ex petrol 2.0%mm, 4.5%yy). UK PSNB data released same time.
  • Flash UK PMI set at 0830GMT in focus, median PMI Mfg 59.0, Svcs 58.9.
  • Support $1.3835/24, $1.3810/00($1.3799 61.8% $1.3669-1.4009), $1.3786(76.4% 1.3717-1.4009), stronger into $1.3749(Apr14 low, 76.4% 1.3669-1.4009)
  • Resistance $1.3870, $1.3895/1.3917, $1.3938.
  • MNI Techs: GBPUSD faced strong selling pressure Thursday extending this week's reversal from 1.4009, Apr 20 high. Gains earlier in the week stalled at the former bull channel base, at 1.4006 drawn off the Nov 2, 2020 low. This suggests recent gains have been corrective in nature and Thursday's move lower signals scope for a deeper pullback. The focus is on 1.3810, Apr 19 low next. A break of 1.4009 is required to reinstate a bullish theme.
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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