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Aug 28 - 03:55 PM

GBP/USD - Supported By Lower 30-D Bolli Amid Reduced Holiday Liquidity

By Paul Spirgel  —  Aug 28 - 01:40 PM
  • GBP$ ending NorAm +0.16% at 1.2594; NorAm range 1.2599-73

  • U.S. Treasury yields off early NorAm high provides slight boost

  • UK bank holiday, end of summer liquidity keeps flows relatively light

  • Sterling shrugs off hawkish Powell as the BoE's rate path trumps Fed

  • Despite recent inflation dip UK rates seen higher for longer than US IRPR

  • GBP$ supt Mon low 1.2568, lwr 30-d Bolli 1.2562, Fri trend low 1.2548

  • Below 1.2548 GBP bears target the 200-DMA at 1.2404

  • Res 1.2609 Monday high, 1.2642 100-DMA, 10-DMA at 1.2692

  • GBP remain wary of the thickening daily cloud spanning 1.2726-1.2920

Source:
Refinitiv IFR Research/Market Commentary

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