By Justin McQueen — Jan 22 - 05:08 AM
• Markets continue to take a sanguine approach to Trump's tariff threats
• Resulting in a softer USD and thus lifting cable to 1.2350
• Though, the UK narrative remains weak, which should limit the bid in GBP/USD
• UK rates see 2-3 cuts this year - room for further dovish repricing
• Flash PMIs (Jan 24) will be key for short-term GBP direction
• Resistance: 23.6% fib of Sep 24/Jan 25 drop = 1.2415, 1.2500
• Support: 1.2300-22 (prior resistance, now support), 1.2230 (200HMA)
GBPUSD hourly chart
(Justin McQueen is a Reuters market analyst. The views expressed are his own.)
Source:
London Stock Exchange Group | Thomson Reuters