Sterling continues its ascent, up 0.25% at 1.2758, benefiting from the broadly lower dollar as traders expect Fed Chair Powell to send an accommodative message after the FOMC, as widely expected, holds rates steady later today.
GBP/USD is down a touch from early NorAm highs just above 1.2800, but well above pandemic lows at 1.1413 and its May 18 low by 1.2075. U.S.
CPI data nAPN0ELW3N hinted at the lingering COVID-19 economic drag.
Cable traders continue downplaying lack of progress on EU-UK trade negotiations, focusing on upbeat global growth expectations as lockdowns ease, and expectations that the Fed will remain extraordinarily accommodative through the current economic crisis. The advantage remains with GBP/USD bulls after recently breaking above multiple daily moving average resistance and currently climbing above weekly technical levels.
Today's rise above 100-WMA resistance, at 1.2773, puts the 200-WMA at 1.2926 and weekly cloud top at 1.2940 in focus.
With the markets focused on USD haven unwinds and continued Fed accommodation, the 200-WMA may not be out of reach as GBP gains prod recent spec shorts to unwind positions.
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