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UK Retail Sales, Flash PMI's in Focus

GBP
MNI (London)
  • GBP/USD managed to further extend its post Brexit trade agreement recovery to $1.3746 Thursday, during the European morning, whilst EUR/GBP was pressed down to Gbp0.8829.
  • This early enthusiasm faded into NY as GBP/USD eased off to $1.3704 with recovery efforts capped below $1.3740.
  • ECB Lagarde comments relieved the recent counter pressure on the EUR which allowed the single currency to push higher, taking EUR/GBP back to Gbp0.8868.
  • Asia extended this recovery in the cross, edged it on to Gbp0.8884 with the technically key 10-dma moving back within view at Gbp0.8899.
  • This move in the cross weighed on GBP/USD through Asia, the rate pressed back to $1.3692 into Europe where it was seen meeting some demand interest.
  • A break below to expose next support band between $1.3670/50
  • Resistance $1.3746/50, $1.3770/80, $1.3800 then into $1.3830.
  • Early focus on UK Retail Sales at 0700GMT(median forecast -1.5%mm; UK were coming out of first lock down with Christmas shopping supportive but petrol likely a dampener). UK flash PMI's at 0930GMT, especially Services data in view.
  • MNI Techs: GBPUSD rallied further Thursday, hitting a new multi-year high at 1.3746. The outlook remains bullish. The sequence of higher highs and higher lows has been maintained, reinforcing the bullish trend. Attention is on 1.3773 next, the May 1 2018 high. To the downside, near-term support has been defined at 1.3520, Jan 18. A breach would signal scope for a deeper short-term sell-off and expose a key support at 1.3452, Jan 11 low.
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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