GBP traded higher against USD and closed at 1.3017.
GBP/USD looks to extend the bounce towards 1.3050 ahead of the UK CPI report, as broad-based US dollar weakness and bullish technical set up underpin the sentiment around the spot.
- Flat – closed up 0.2%, as expectations of a Jan BoE cut cooled
- Inflation data on today and retail sales Friday will be key for sterling
- Despite bounce daily charts are negative, though at low end of recent ranges
- Momentum studies, 5, 10 & 21 DMAs head lower and 21 day Bolli bands slip
- 1.2900, December low then 1.2887 lower 21 day Bolli band are major support
According to the Analysis, pair is expected to find support at 1.2973 and a fall through could take it to the next support level of 1.2954. The pair is expected to find its first resistance at 1.3033, and a rise through could take it to the next resistance level of 1.3052.
EUR traded higher against USD and closed at 1.1127.
- EUR/USD barely moved in Asia trading in a 1.1126/31 range
- Most of the action in regionals as USD moved up on Mnuchin comments\
- Resistance at 10-day MA at 1.1140 with option selling ahead of 1.1150
- Large option maturities 1.1100/50 defining recent range
- Break above 1.1150 targets 61.8 fibo of 1.1240/1.1085 at 1.1181
- EZ IP later today, but US-China trade deal likely to be main event
According to the Analysis, pair is expected to find support at 1.1111 and a fall through could take it to the next support level of 1.1101. The pair is expected to find its first resistance at 1.1141 and a rise through could take it to the next resistance level of 1.1151.
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