Five reasons to sell GBPUSD
1- On 03/03 the real interest rate differential was 0.16 in favor of the UK and the big speculators were bought in 29k contracts(CoT). The value of gbpusd? Approximately 1.28
On 06/10 the real interest rate differential was 0.70, now in favor of the USA and the big speculators were sold at 36k(CoT). The value of gbpusd? Approximately 1.28
2- If we look at the latest OECD productivity data, we see that the United States is heading towards a faster recovery than the United Kingdom.
3- Despite the excess liquidity injected by the Fed and the recent increase in the search for riskier assets such as AUD, NZD and GBP, the fundamentals point to an appreciation of the dollar and a depreciation of the pound.
4- Technically we can see a consolidation between 1.21-1.27, and a selling pressure leaving the current top lower than the previous one at 1.28. The IFT RSI shows that we are in a possible overbought region.
5- The Brexit negotiation still seems uncertain and with no prospect of being concluded.
In addition, I don't see five reasons to buy the pound sterling. I believe in a correction until August 2019 levels, approximately 1.21.
On 06/10 the real interest rate differential was 0.70, now in favor of the USA and the big speculators were sold at 36k(CoT). The value of gbpusd? Approximately 1.28
2- If we look at the latest OECD productivity data, we see that the United States is heading towards a faster recovery than the United Kingdom.
3- Despite the excess liquidity injected by the Fed and the recent increase in the search for riskier assets such as AUD, NZD and GBP, the fundamentals point to an appreciation of the dollar and a depreciation of the pound.
4- Technically we can see a consolidation between 1.21-1.27, and a selling pressure leaving the current top lower than the previous one at 1.28. The IFT RSI shows that we are in a possible overbought region.
5- The Brexit negotiation still seems uncertain and with no prospect of being concluded.
In addition, I don't see five reasons to buy the pound sterling. I believe in a correction until August 2019 levels, approximately 1.21.
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