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May 07 - 04:55 PM

GBP/USD - Eyes 21-DMA Support By 1.2504 As BoE Rate Cut Odds Rise

By Paul Spirgel  —  May 07 - 01:55 PM
  • GBP$ slips into NorAm close, -0.31% at 1.2523; Tuesday range 1.2569-1.2511

  • Pair dips below Fri's flash low at 1.2530, finds supt ahead of 21-DMA 1.2504

  • Below 1.2504 the May 1 low at 1.2467 and April 26 low at 1.2449 targeted

  • Res at 1.2546 the 200-DMA, 1.2569 Tues high, 1.2593 Monday high

  • Sterling bulls beware the BoE nL1N3HA1ST

  • Longs cautious pre-BoE Thurs; BoE to hold, presser in focus for policy view

  • Polling indicates growing expectations of more dovish BoE policy

  • IRPR shows more than 40% odds for June hike, -52bp by Dec 19 BoE meeting

Source:
Refinitiv IFR Research/Market Commentary

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