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U.S. dollar continues the sentiment from Friday afternoon, trading weaker today. GBP/USD sold off that day and then reversed just as strongly. The pair is contained in a three-cent range, between 1.3050 - 1.3350. Direction of the breakout will depend on this week's U.K. economic data that may either soldify or weaken the case for BOE rate hike in August.
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GBP rallies on Brexit deal progress
Pound pairs rallied yesterday as E.U. and U.K. reached an important Brexit milestone. GBP/USD ran stops above 1.40 and is currently holding above the big figure. It's a big week for GBP data-wise, starting with inflation today, jobs tomorrow and retail sales on Thursday, along with BOE meeting and E.U. summit. 50 DMA has to hold if the momentum is to remain in place. In broader terms, 1.375 - 1.425 range still in play.
GBP/USD on the highest level since Brexit vote
GBP/USD surged 200 pips on Friday, closing the week on the highest level since Brexit vote. General U.S. dollar weakness and Spain and Netherlands supporting softer terms for actual Brexit were the main drivers. 1.3835 and 1.40 are the next targets. CPI and Retail Sales reports next week are the key U.K. data releases to watch in the week ahead.
Cable closed near the low but dip buyers noted
Cable closed near the low last week after taking out Article 50 low at 1.2375. However, the pair opened with a gap up today, which testifies of some demand at this level. Inflation and job reports will be closely watched this week and will help determine the direction of the next leg.
The pair is back below 50 and 100 DMA which makes 1.24 - 1.2425 the initial resistance. 1.25 - 1.2525 is the next one before March 27th high at 1.2615. On the downside, there's 1.2340 - 1.2360 (50.0% retracement of…
The pair is back below 50 and 100 DMA which makes 1.24 - 1.2425 the initial resistance. 1.25 - 1.2525 is the next one before March 27th high at 1.2615. On the downside, there's 1.2340 - 1.2360 (50.0% retracement of…
Cable looks supported below 1.25
British pound has been withstanding U.S. dollar strength well and is basically flat compared to the beginning of the last week. Weaker inflation figures failed to send the pair lower yesterday. There's more U.K. data coming in today (jobs and wages) and tomorrow (retail sales).
1.25 is the current bull/bear line in sand. 50 DMA is the first resistance level to watch and then the next one in 1.275 - 1.28 band. Some stronger demand could be expected between 1.23 and 1.24.
1.25 is the current bull/bear line in sand. 50 DMA is the first resistance level to watch and then the next one in 1.275 - 1.28 band. Some stronger demand could be expected between 1.23 and 1.24.