The British pound has weakened across the board this week. And we see potential for further downside to come. GBP/NZD has depreciated around -1.4% since our prior video, having broken its bullish trendline and suggesting the high has been seen around 2.0.
As for cable, it’s found support around 1.2183 yet 2-year yield differentials between US and UK rates point lower, so we’re waiting for a downside break on GBP/USD. Whilst it may not come in a straight line, we remain bearish whilst prices remain beneath the 1.2413 high.
We’re just a couple of hours away from a slew of UK data which includes industrial, manufacturing and construction output and monthly GDP. It would likely take a broad set of stronger than expected figures to lift GBP from its lows, so any rally below 1.2413 could be appealing to fade into, to anticipate an eventual break lower.
Watching Cable For A Break Lower
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