Morgan Stanley believes in bearish GBP related to USD, the question now is the following: where to sell?
GBP: Waiting for Opportunities to Sell. Bearish.
"We maintain our bearish GBP view, but are cautious that current levels
may not be the most attractive to enter short positions. Markets have
pushed the timing of the first hike in the UK back to August 2016, well
beyond our economists’ expectation of a February hike. However, risk
appetite remains weak and concerns in China are high. GBP tends to
underperform in periods of heightened volatility, and this could
continue."
Let's
evaluate the situation with GBP/USD concerning future possible
direction in long-term situation.
GBP/USD: bearish ranging within bullish reversal resistance and strong bearish support. This pair is on primary bearish market condition with secondary ranging within 1.5929 key resistance and 1.4565 key support level. If the price breaks 1.5929 key resistance located near 100-SMA/200-SMA on bearish/bullish reversal on the chart so the price will be reversed to the primary bullish condition. If the price breaks 1.4565 support level so the primary bearish will be continuing.
| Resistance | Support |
|---|---|
| 1.5929 | 1.4565 |
| N/A | N/A |
