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Aug 15 - 08:55 PM

GBP/USD - Gilt Yields Higher For Longer Provides Support

By Andrew M Spencer  —  Aug 15 - 07:55 PM
  • -0.05% after closing up 0.15%, as the U.S. dollar and euro closed steady

  • UK basic wage growth hit a record, as the jobless rate climbed

  • Gilt yields rose, 10yr +4bp 4.603%, adds to pressure on Bank of England

  • Tight Asian range likely into UK inflation data, which is key for the BoE

  • Charts; neutral daily momentum studies, 21-day Bollinger bands contract

  • 5, 10 & 21-day moving averages edge lower - a modest downside bias

  • Early London 1.2680 low, then 1.2627 61.8% May/July fall initial supports

  • 1.2753 New York high then 1.2783 21 DMA are the first resistances

    For more click on FXBUZ

Source:
Refinitiv IFR Research/Market Commentary

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