Fundamental Forecast for Pound: Bearish
- British Pound breakdown looks like the real deal, further losses ahead
- Disappointing UK Manufacturing data sends the GBP to fresh lows
Traders sent the Sterling lower for the fourth-consecutive trading
week, and whether it can recover into the new month may depend on the
upcoming Bank of England monetary policy decision on the 7th and Inflation Report due the 13th.
We argue that a sharp shift in sentiment warns that the Sterling
has made a significant top and is likely to continue lower. It will be
important to watch any game-changing shifts from the Bank of England in
the two weeks ahead, but a sharp reversal below the psychologically
significant $1.70 mark leaves risks to the downside for the GBP.
