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Jun 23 - 11:55 AM

GBP/USD - COMMENT-Sterling Lags In Rally Vs Dollar As Brexit Tempers Reopening Hope

By Paul Spirgel  —  Jun 23 - 10:35 AM

Sterling drifted higher in U.S. trade as economic reopening optimism prevailed again, with the UK announcing further easing of the coronavirus lockdown nS8N2DF08Z, but GBP/USD's difficulty in cracking resistance above 1.2500 indicated traders' hesitance to press the rally aggressively.

GBP/USD was rebuffed above 1.2500 in the Asia, Europe and U.S. sessions, with traders wary of knocking out 10-day moving average resistance by 1.2536, which would signal a more decisive shift in momentum toward bulls.
Investors remain aware that any deterioration in reopening optimism could highlight Brexit-related UK economic uncertainty, potentially reversing recent sterling gains toward support by the daily ichimoku cloud twist just above 1.2300.
The pound was also underperforming other major currencies versus the dollar.
Negotiating pressure is not limited to the EU, with the FT reporting that Japan had given the UK six weeks to agree to a trade deal Click here .
For now, though, broad economic optimism reflected in global PMI data -- including UK Manufacturing PMI registering an above-consensus reading of 50.1 nL8N2DZ4DR -- was underpinning sterling.

For more click on FXBUZ


GBP Chart: Click here

Source:
Refinitiv IFR Research/Market Commentary

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