8 Jul 2015
GBP/USD: Downside towards 1.52 possible – TDS
FXStreet (Barcelona) - FX Strategists at TD Securities, see bearish potential for GBP/USD towards 1.52, and further maintain a long GBP position versus commodity currencies.
Key Quotes
“GBPUSD has come under significant pressure in recent days despite the fact that the data has performed well (with the exception of a negative surprise in manufacturing production on Monday which renewed a selling mentality). But, fundamentally we remain constructive on the UK economy so we view the recent moves in cable as a position squeeze; there has been a significant build up of net long positions from the leveraged accounts (according to the IMM data).”
“Technicals look bearish in the near-term and we think that 1.52 is probable.”
“That said, we have long articulated that long GBP positions should be expressed versus the commodity currencies and GBPCAD remains one of our favorites.”
Key Quotes
“GBPUSD has come under significant pressure in recent days despite the fact that the data has performed well (with the exception of a negative surprise in manufacturing production on Monday which renewed a selling mentality). But, fundamentally we remain constructive on the UK economy so we view the recent moves in cable as a position squeeze; there has been a significant build up of net long positions from the leveraged accounts (according to the IMM data).”
“Technicals look bearish in the near-term and we think that 1.52 is probable.”
“That said, we have long articulated that long GBP positions should be expressed versus the commodity currencies and GBPCAD remains one of our favorites.”