3 Feb 2014
Flash: GBP is weak, where next? - Scotiabank
FXStreet (Guatemala) - Camilla Sutton, CFA, CMT, Chief FX Strategist at Scotiabank noted that "GBP is weak.
Key Quotes
"GBP is weak, trading through important technical support. The drop has been multifold but mainly on the back of a disappointing PMI manufacturing,which fell to 56.7. In addition, there are rising concerns that the UK and in particular London housing market is showing signs of overheating and moving towards a bubble. Finally, an WSJ article draws attention to risks surrounding the UK’s current account deficit of 5% of GDP."
"GBP/USD shortterm technicals: mixed but increasingly bearish as spot drops easily through technical support. The next level of support lies at the January low of 1.6310, a drop below here would open up a test down to the 100 ‐ day MA of 1.6247."
Key Quotes
"GBP is weak, trading through important technical support. The drop has been multifold but mainly on the back of a disappointing PMI manufacturing,which fell to 56.7. In addition, there are rising concerns that the UK and in particular London housing market is showing signs of overheating and moving towards a bubble. Finally, an WSJ article draws attention to risks surrounding the UK’s current account deficit of 5% of GDP."
"GBP/USD shortterm technicals: mixed but increasingly bearish as spot drops easily through technical support. The next level of support lies at the January low of 1.6310, a drop below here would open up a test down to the 100 ‐ day MA of 1.6247."