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Mar 08 - 11:55 AM

GBP/USD - COMMENT-Sterling Bulls Cling To Gains Amid Persistent Dollar Buying

By Paul Spirgel  —  Mar 08 - 10:23 AM

Sterling held steady on Monday, withstanding a broadly stronger dollar better than some other major currencies after upbeat comments by BoE Governor Andrew Bailey nL1N2L60N2, but GBP/USD's bullish shine appears tarnished for the moment.

While recent dollar gains have eased cable off February's 34-month highs above 1.42, the U.S. currency and sterling share some of the same strengths -- particularly the rapid UK vaccine deployment.

That has helped the pound versus the euro and yen.

However, risks for GBP/USD remain, and Friday's GBP/USD close below 30-day moving average support by 1.3853 may hint that a larger fall, similar to those suffered by the euro and yen.

The 30-DMA has supported GBP/USD from November 2020 lows below 1.30 and but for a few flash moves below has anchored GBP/USD's rise.

A further consolidation below the 30-DMA puts the 55-DMA at 1.3732 in focus and would further damage the pound's current bullish structure.
The tipping point for sterling bulls is likely to be 1.3547, the 50% Fib of 1.2854-1.4240's Nov-Feb rise.

A break below 1.3547 would put the Dec.
22 low at 1.3305 and the 200-DMA at 1.3172 in sharper focus.

For more click on FXBUZ


GBP Chart: Click here

Source:
Refinitiv IFR Research/Market Commentary

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