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Trend Conditions Remain Bullish Despite Fri/Mon Weakness

GBP
  • GBP weakness continues to pervade, with GBP weaker against all others in G10 outside of the JPY. This extends the pullback from the cycle high posted last week at 1.3749 following the failed break of the 1.3737 200-dma.
  • Despite the Friday/Monday weakness in the pair, trend conditions remain bullish, with markets needing to retake the 200-dma ahead of 1.3835 - the Oct20 high and key resistance.
  • Politics and economics the focus this week, with jobs data and December inflation the key releases on Tuesday/Wednesday respectively.

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