GBP/USD bounces off 6-month lows

29 May, 2018

USD bulls take some breather and prompt some short-covering bounce. Brexit uncertainty keeps a lid on any meaningful recovery for the pair.

The GBP/USD pair found decent support near the 1.3200 handle and bounced nearly 70-pips from six-month lows touched earlier.

The US Dollar took some breather following today's strong upsurge to the 95.00 neighborhood, or fresh yearly tops, and was seen as one of the key factors that prompted some short-covering amid near-term oversold conditions. 

The rebound, however, was not backed by any obvious fundamental catalyst and hence, lacked any strong follow-through, with uncertainty around Brexit negotiations further collaborating towards keeping a lid on any meaningful recovery.

The pair has now retreated back to mid-1.3200s as traders now look forward to the release of Conference Board's consumer confidence index, the only highlight from today's thin US economic docket, for some fresh impetus.

Technical levels to watch

Weakness back below 1.3230 level might continue to find support near the 1.3200 handle, which if broken should pave the way for an extension of the pair's bearish trajectory. 

On the upside, recovery attempts beyond 1.3275-80 immediate hurdle might now confront fresh supply near the 1.3300 handle, above which a bout of short-covering could lift the pair further towards 1.3340 supply zone.


Source link  
Gold and oil shorts covered

According to the CFTC Weekly Report (W/E July 10), as the WTI crude oil spiked toward $75/bbl amid fears of supply shortages and low spare capacity, which...

Global markets in a delicate spot

Analysts at Westpac, suggest that global markets remain in a delicate spot due to ongoing uncertainty of the US/China trade saga and growing geopolitical tensions...

Powell to stick to gradual path

Analysts at Deutsche Bank suggest that new Fed Chair Powell’s testimony is at 3pm GMT and he will be speaking on behalf of the FOMC...


GBP futures: bottomed out?

In light of advanced figures for GBP futures markets, open interest decreased by almost 5K contracts on Friday vs. Thursday's 209,855 contracts...

Strong market sentiment continues

Chief Analyst, Allan von Mehren at Danske Bank suggests that global market sentiment continues to be strong with further decent increases in stock...

A week with no market movers

In the US, the coming week brings no market movers. The week after New Year’s Eve, however, brings several interesting releases. As the statement from the meeting..


Buy the rumour, sell the fact

It’s an action-packed week for global markets with a deluge of G20 central bank meetings and key economic data releases to contemplate ahead of...

EUR futures: within range so far

In light of advanced data from CME Group, open interest in EUR futures markets rose by 750 contracts on Wednesday vs. Tuesday...

Fed expected to tighten QE

We expect the Fed to maintain the Fed funds target range at 1.00-1.25% at this week’s meeting, in line with consensus and market pricing...

  


Share: