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Aug 09 - 04:55 PM

GBP/USD - Gains Extended, Bulls Wary Of 10-DMA Resistance By 1.2777

By Paul Spirgel  —  Aug 09 - 01:50 PM
  • GBP$ firm into NY afternoon, +0.13% at 1.2767; Friday range 1.2773-1.2727

  • Lower UST yields and significantly lower risk angst aids GBP$ bid

  • Pair extends rise, albeit slowly, after tests of 100-DMA support by 1.2685

  • Sterling bears turn tail, bulls eye 10-DMA resistance by 1.2777 nL1N3JW0J4

  • GBP long unwind may be overdone given UK rate advantage over U.S.

  • LSEG's IRPR indicate perhaps 2-more BoE cuts in 2024, Fed seen cutting 100bp

  • Res at 1.2773 Fri high, 1.2777 falling 10-DMA, 1.2829 50% of 1.3044-1.2613

  • Supt 1.2727 Friday low, 1.2686 the oft-tested 100-DMA, 1.2663 the 200-DMA

  • Data remains key; Tuesday UK employment, Wednesday's UK, U.S. CPI in focus

Source:
Refinitiv IFR Research/Market Commentary

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