Cable Flirts with Drop Below 1.3000 in Firmer Dollar

As Treasury yields rise, the Dollar remains supported to start the new week with the jump above USD/JPY 125.00 also providing additional technical impetus for the greenback at this time.

That’s seeing Cable fall back below 1.3000 with monthly UK GDP data also rather disappointing, but that’s not exactly a major surprise.

The 1.3000 level has been a key support region for the pair since March trading and a firm break below that could trigger the next leg lower for GBP/USD.

The 50.0 retracement level of the upward swing from March 2020 to February 2021 lies at 1.2830 and will be the next key level to watch on any decline below 1.3000.

From a fundamental perspective, there is also a divergence in central bank conviction lately, with the BOE backtracking on its hawkish rhetoric while the Fed maintains that it can maintain a more aggressive tightening cycle.


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