GBPUSD bulls remain in the driver’s seat. This week’s clearance of resistance at 1.2848, the Jun 16 high, confirms a resumption of the medium-term uptrend and maintains the bullish price sequence of higher highs and higher lows. Note that moving average studies are in a bull-mode position. The focus is on 1.3035 next, the Apr 22 2022 high. Initial firm support lies at 1.2751, the 20-day EMA.
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ACGB's sit 1bp cheaper to 6bps richer across the major benchmarks, the curve has twist flattened piboting on 5s.
Schatz futures remain below 105.875, the Jun 1 high. The recent recovery is considered corrective - for now. A bearish theme remains intact and the focus is on key short-term support at 105.330, the May 26 low and bear trigger. Clearance of this support would confirm a resumption of the bear cycle that started in March and open the 105.00 handle. Key short-term resistance to watch is seen at 105.655, the Jun 6 high. A break would alter the picture.
Regional equities are mostly tracking higher. The China PBoC 7-day cut providing some support, but other themes have been evident. Japan stocks once again leading the move higher. Tech related indices have also risen, following strong gains in Monday US trade. US futures are firmer, Eminis last near 4400, +0.20%, while Nasdaq futures continue to outperform (+0.40%).