Home GBP/USD: Rally Doesn’t Jive With Data; Looking To Play It From Short Side This Week – TD
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GBP/USD: Rally Doesn’t Jive With Data; Looking To Play It From Short Side This Week – TD

The pound rallied to 1.4376 and then retreated back. What’s next?

Here is their view, courtesy of eFXdata:

TD Research discusses GBP/USD outlook and notes that while Cable has been among the top-performing currencies in the majors month-to-date,  the rally does not jive with the data, which stalled at the start of this year.

“For GBP, the recent softening on the Brexit risks has probably sought to fight off a string of weak data…We also note the seasonal pickup in capital flows has perhaps played a role in the perky pound.

Still,  we suspect that it has probably run ahead of the data and news-flow, leaving it vulnerable to correction on a downside CPI print.

Our HFFV sits at 1.399 and GBPUSD is running about 2% above the midpoint of the 2m range.  We would look to play it from the short side this week,” TD argues.

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Yohay Elam

Yohay Elam

Yohay Elam: Founder, Writer and Editor I have been into forex trading for over 5 years, and I share the experience that I have and the knowledge that I've accumulated. After taking a short course about forex. Like many forex traders, I've earned a significant share of my knowledge the hard way. Macroeconomics, the impact of news on the ever-moving currency markets and trading psychology have always fascinated me. Before founding Forex Crunch, I've worked as a programmer in various hi-tech companies. I have a B. Sc. in Computer Science from Ben Gurion University. Given this background, forex software has a relatively bigger share in the posts.