Pound Sterling (GBP) continued to hover close to current highs amid broad US Greenback (USD) softness whereas Euro (EUR)’s rally had spillover results. Pair was final at 1.3489, OCBC’s FX analysts Frances Cheung and Christopher Wong notice.
Corrective pullback not dominated out
“Whereas higher than anticipated knowledge (mirrored in current GDP, retail gross sales, PMI knowledge) has been supportive of GBP’s rally, this week’s labour market knowledge (Tue), IP, GDP, commerce knowledge on Thu in addition to the S&P, KPMG, REC UK joint report on jobs (Fri) can be key. A stronger print ought to proceed to solidify GBP’s rebound momentum, however a softer knowledge end result could dent the momentum.”
“Each day momentum exhibits indicators of turning gentle bearish whereas RSI fell. Corrective pullback not dominated out. Help at 1.3440/60 ranges (earlier double high, now turned assist, 21 DMA), 1.33 (50 DMA). Resistance at 1.3620, 1.3750 ranges. We search for alternative on dips to purchase into.
