GBP/USD rebounded in U.S. trade from earlier losses, hitting a session high as bulls remained reluctant to give up the cause and set sights on recent trend peaks in the high 1.31's.
The pound's belated rise came after a rise in China CPI nB9N2BD04W and expectations of U.S. COVID recovery aid nL1N2FA06J, shrugging off ramped-up U.S.-China political angst.
GBP/USD's failed probes of lows below its 10-day moving average, currently at 1.3066, provides support for another test of Thursday's 1.3185 high, March peaks by 1.3200 and potentially Dec.
31 highs by 1.3284.
However, each successive failure ahead of 1.3200 weakens GBP/USD's bullish structure, opening the way for further losses below a series of daily moving averages down to the 100-DMA by 1.2504 and the daily cloud top by 1.2477.
With IMM positioning at -15k there is likely little help for sterling bulls from short position-squaring and a rise toward December election highs by 1.3516 would require a positive resolution to the UK's long-running Brexit drama.
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