GBPUSD bulls remain in the driver’s seat and this week’s pullback appears to be a correction. The move lower is allowing a recent overbought condition to unwind. Support to watch lies at 1.2624, the 20-day EMA. The trend outlook remains bullish. The recent break of 1.2680, the May 10 high and a bull trigger, strengthens bullish conditions and opens 1.2849 next, a Fibonacci projection.
Find more articles and bullets on these widgets:
Regional equity markets have mostly tracked lower in Asia Pac today, in line with US and EU losses from Tuesday's session. The US debt impasse continues to hang over markets, with little fresh news late Tuesday evening in the US. US futures are a touch higher though, eminis last +0.15% near 4165, while Nasdaq futures were up by around the same amount.
ACGBs are richer (YM +6.0 & XM +2.5) with the curve steeper as the local market enjoyed spillover from the bid in NZGBs following the RBNZ indicating that the current OCR level would be the peak.
GBPUSD maintains a softer tone and traded lower Tuesday, before finding support. A bearish theme remains intact and price continues to test support at 1.2410, the 50-day EMA. A clear break of it would strengthen a bearish threat and expose 1.2345, the Apr 10 low. On the upside, initial resistance is 1.2480, the 20-day EMA. A break above 1.2547, the May 16 high, is required to signal a reversal.