FXStreet (Barcelona) – Eric Theoret, CFA, CMT, Currency Strategist at Scotiabank, notes that GBP/USD is weak, pressured by shifting sentiment on S&P outlook cut, with short-term technicals exhibiting a bearish tone.
Key Quotes
“GBP is weak, falling steadily in the context of broad-based USD strength with added pressure from softened sentiment in response to Friday’s negative credit rating outlook revision from S&P. The sovereign credit rating was held at AAA, however the negative outlook was introduced in light of political risk arising from the referendum on EU membership. This week’s domestic risk will centre on Tuesday’s CPI and Wednesday’s employment and BoE minutes release.”
“GBPUSD short-term technicals: bearish—near term consolidation continues around the 200 day MA (1.5489). Resistance is seen at 1.5600, and we look to a decline toward 1.5420. Signals are muted.”
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