The Pound has been sliding against most of the G10 currencies. Cable yesterday broke step with EURUSD, with the latter declining while the former ascended. Cable dropped from two-day highs to the lower 1.4100s, while EURGBP rallied to a 15-day high at 0.8672. The much stronger than anticipated read on the May German Ifo business climate indicator yesterday reinforced the picture of a rebounding Eurozone economy.
Cable faced negative pressure yesterday to break the bullish flag’s support line and settles below it, to cancel this positive formation and put the price under more expected negative pressure in the upcoming period, on its way to visit 1.3990 areas mainly.
The GBPUSD pair remained pressured around 1.4115 in Today’s Thursday’s Asian session. The drop of the previous day didn’t conquer the 1.4115 support convergence comprising a monthly rising trend line and the weekly support line. Although bearish MACD signals break of the 1.4115 immediate support, the 1.4100 threshold and 100-SMA around 1.4085 could test the GBPUSD bears afterward.
Today Investors will be expecting the US quarterly preliminary GDP number which is expected to stir up volatility in the USD pairs.
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