- GBP/USD bears looking for further losses and closes below key support.
- GBP/USD has PM May's Brexit speech in focus.
GBP/USD has been drifting lower on Monday while Brexit concerns still cripple any advances made in light of a hawkish BoE. Currently, GBP/USD is trading at 1.3816, down -0.03% on the day, having posted a daily high at 1.3878 and low at 1.3796.
The calendar is light but comments from BoE MPC member Vlieghe have been constructive, suggesting that a three-hike path over the next three years ‘would still have excess demand and wouldn’t quite get inflation back to target’, as noted by analysts at Scotiabank.
Data and Brexit speeches
The focus will now turn to this week’s domestic releases that include Tuesday’s CPI and Friday’s retail sales. We will also have a number of speeches from senior Cabinet ministers before hearing PM May’s speech this coming weekend.
Bears are looking for a close below 1.3823, the weekly Tenkan and the 50% fibo of the 1.33-1.4346 and are hungry for further losses. To the upside, the 4hr 10 SMA is located at 1.3865 and the 100 SMA at 1.4048. On the wide, the 200-week moving average is located at 1.4375 and remains a key target to put the bulls back o the map at the Jan highs. To the downside, 1.3770, then the 1.3658 level as being the September peak on a break of the 200-4hr SMA at 1.3826 and 1.3724 mid-Jan lows. There are then further daily lows on the way to 1.3458 Jan 11 low & 1.33 Dec 15 low.
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