GBP Trading Outlook
The Sterling (GBP) broke lower going into in the start of the European session with GBP/USD hitting new trend lows at 1.5125 before rebounding sharply to 1.5260 as EUR/GBP selling. The outlook is very weak for the GBP/USD and selling rallies remains the preferred way to gain from the strong downtrend. Looking ahead, February German IFO Business Climate forecast at 105 vs. 104.2 previously.
The Sterling (GBP) fell sharply for most of the day down over 200 pips and hitting 1.5200 in the Asian session so far. The market was already bearish on the Pound and the change in risk sentiment has added to the selloff. GBP/JPY and GBP/AUD and EUR/GBP are all threatening new lows against their respective currencies. UK Unemployment Rate increased to 7.8% vs. 7.7% previously. Looking ahead, France Manufacturing Survey forecast at 44.5 vs. 43.6. German Manufacturing forecast at 55.5 vs. 55.7 previously. February EU manufacturing forecast at 49 vs. 48.6.
The Sterling (GBP) Fresh trend lows where seen on Cable at 1.5440 before we bounced back to 1.5460 in quiet US session trade. The market is selling the Pound on expectations of further easing from the BOE and comments from Waele over the weekend confirmed this sentiment when stated the GBP had further to fall to balance the UK economy. Looking ahead, February German ZEW Survey forecast at 35 vs. 31.5 previously.
. The Sterling (GBP) Heavy GBP/USD selling was seen after terrible January Retail Sales at -0.6% vs. 0.5% forecast m/m. The 1.5500 level was broken and we fell to fresh trend lows at 1.5460 before recovering back to the 1.5500 figure for the close. The market has turned extremely bearish with 1.5000 the medium term trend target. Looking ahead, Eurozone Current Account forecast at 14.8bn previously. ECB President Draghi Speaks.
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