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29 Jun 2015
GBP/USD near term risk lies to the downside – Scotiabank
FXStreet (Barcelona) - Eric Theoret, CFA, CMT, Currency Strategist at Scotiabank, sees near-term risks for GBP/USD tilted to the downside, with technicals signalling towards a short-term bearish outlook for the pair.
Key Quotes
“GBP is soft, down a modest 0.3% from Friday’s close on the back of broader market sentiment driven by Greece. Near term risk lies to the downside, however we look to the potential for some offsetting gains in response to Tuesday’s final GDP revision for Q1. PMI’s will round out the remainder of the week, beginning with the manufacturing PMI on Wednesday.”
“GBPUSD short-term technicals: bearish—Monday’s candle hints to limited upside potential as we note a sizeable upper shadow. A rising wedge formation has taken shape since mid-May, its lower bound currently seen around 1.5500. Rising wedges are typically resolved to the downside.”
Key Quotes
“GBP is soft, down a modest 0.3% from Friday’s close on the back of broader market sentiment driven by Greece. Near term risk lies to the downside, however we look to the potential for some offsetting gains in response to Tuesday’s final GDP revision for Q1. PMI’s will round out the remainder of the week, beginning with the manufacturing PMI on Wednesday.”
“GBPUSD short-term technicals: bearish—Monday’s candle hints to limited upside potential as we note a sizeable upper shadow. A rising wedge formation has taken shape since mid-May, its lower bound currently seen around 1.5500. Rising wedges are typically resolved to the downside.”