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Thomson Reuters
Apr 12 - 12:12 PM
GBP/USD - COMMENT-GBP/USD Up On Broad USD Selling, Reduced Brexit Angst
First appeared on eFXplus on Apr 12 - 10:15 AM

Cable has risen in early NorAm to new 8-day high above 1.3130, eyeing near-term resistance at the downward trend channel top from March highs, at 1.3136, and the 30-DMA by 1.3144.
The pound had been firming overnight in sympathy with EUR/USD strength on the back of German and euro zone data beats and merger-related demand for euro out of Japan.
Adding to GBP/USD strength are reports, from Labour's McDonnell nL9N21G041, that Brexit negotiations are positive and constructive as well as statements by British FinMin Hammond who said it was likely a second referendum would be put to parliament at some point nL9N21U000.
With the current Brexit extension period now set for October 30 and no-deal sentiment off the radar, GBP/USD volatility has dipped to five-year lows nL1N21U0DN, which may prod GBP/USD specs to re-enter the market.
Short GBP/USD IMM positioning nL1N21Q0F8 hit nine-month lows prior to the recent Brexit extension.
A break above the trend channel top and 30-DMA puts the falling weekly cloud base, which has capped pricing since late July 2018, at 1.3179 and March 27's 1.3269 high in view.
Though bulls need a rise above March 13's 2019 high at 1.3380 to regain momentum.
Recent lows by 1.3050 and the 200-DMA by 1.2974 provide support.

GBP Chart: Click here

Source:
Thomson Reuters IFR Markets

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