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GBP/USD refreshes three-week high while extending the latest pullback from 1.2600 as the cable is trading around 1.2645, up 0.27% on a day. Terence Wu, an FX strategists at OCBC Bank, sets the target for this extension at the 1.2698 200-day moving average.

Key quotes

“Broadly speaking, US equities are back at recent range highs, and the DXY index near lows. Increasing chatter for US equities to break higher from range, and the USD to break lower again in a way akin to late-May.”

“GBP/USD held above 1.2600 in another bounce higher. New fiscal stimulus announced provided the boost higher for now. Nevertheless, the background risk is never too far away, as highlighted by BOE’s Haldane, who called the UK economy facing the greatest uncertainty in his career.” 

“Any further upward extension will target the 200-day MA (1.2698).”