Pound Sterling (GBP) continued to hover near recent highs amid broad US Dollar (USD) softness while Euro (EUR)’s rally had spillover effects. Pair was last at 1.3489, OCBC’s FX analysts Frances Cheung and Christopher Wong note.
Corrective pullback not ruled out
“While better than expected data (reflected in recent GDP, retail sales, PMI data) has been supportive of GBP’s rally, this week’s IP, GDP, trade data on Thursday as well as the S&P, KPMG, REC UK joint report on jobs (Friday) will be key. A stronger print should continue to solidify GBP’s rebound momentum, but a softer data outcome may dent the momentum.”
“Daily momentum shows signs of turning mild bearish while RSI fell. Corrective pullback not ruled out. Support at 1.3440/60 levels (previous double top, now turned support, 21 DMA), 1.33 (50 DMA). Resistance at 1.3620, 1.3750 levels. We look for opportunity on dips to buy into.
(This report was corrected on June 10 at 09:25 GMT to rule out labour data that was already out, the title was changed from “Labor market data today” to “Lots of data points this week to consider”.)