GBP/USD: Too Early For Throwing In The Towel On Constructive GBP View – ING

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GBP/USD dropped quite a bit. Is it oversold? The team at ING suggests not throwing the towel too fast.

Here is their view, courtesy of eFXdata:

ING Research discusses GBP/USD outlook and maintains its structural bullish bias on GBP for now.

“After another dismal week for GBP – with the disappointing 1Q UK GDP print all but denting hopes for a May BoE rate hike – there is a temptation to say that this is as good as it gets for the pound.

We think it may be too early to throw in the towel on our bullish GBP outlook; one set of data releases do not alter a medium-term outlook, while the forces that have underpinned a more buoyant GBP in 2018 – namely a re-pricing of a structural Brexit risk premium and lower short-term economic uncertainty – still to some degree remains in place,” ING argues.

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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 the 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.

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