GBPUSD 4-HOUR CHART – REVERSAL OF FORTUNE
GBPUSD, which fell sharply to end last week on shifting interest rate cut expectations has reversed course as the market reassesses that outlook.’
This saw UK 10-year bond yield rise 9BPS to close yesterday at the highest level for the year.
Combine that with JPY weakness and a sharp GBPJPY rise, you can see why there has been a GBPUSD reversal.
GBP is also firmer on other crosses (e.g. EURGBP is lower as well).
Looking at this chart, it needs to hold 1.2497 *=(suggests 1.25 as well) to maintain a strong bid although support is seen as long as it stays above 1.2423.