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14 Aug 2014
GBP/USD fresh lows likely before recovery - Scotiabank
FXStreet (Córdoba) - Camilla Sutton, strategist at Scotiabank, said they expect the GBP/USD to eventually recover and retrace some of its weakness, but in the near-term fresh lows are likely.
Key Quotes
“GBP is weak, having dropped to a fresh multi‐month low and flirting with its 200‐day MA at 1.6664. The market is still adjusting to yesterday’s less hawkish BoE comments leaving GBP notably weak on all its crosses”.
“Profit taking on long GBP positions has been an ongoing trend over the last several weeks (CFTC data suggest that the peak gross long was mid‐June); while the options markets have been pricing for the risk of GBP downside since early July”.
“We expect GBP to eventually recover and retrace some of its weakness; however for the near‐term we are likely to see fresh lows first”.
Key Quotes
“GBP is weak, having dropped to a fresh multi‐month low and flirting with its 200‐day MA at 1.6664. The market is still adjusting to yesterday’s less hawkish BoE comments leaving GBP notably weak on all its crosses”.
“Profit taking on long GBP positions has been an ongoing trend over the last several weeks (CFTC data suggest that the peak gross long was mid‐June); while the options markets have been pricing for the risk of GBP downside since early July”.
“We expect GBP to eventually recover and retrace some of its weakness; however for the near‐term we are likely to see fresh lows first”.