Sterling Under Pressure As Weak Exports Dim Growth Outlook
The GBP/USD is threatening to close below 1.4800 for the first time since 4/30/2009 which would be a clear bearish sign. If that is the case then I would look to get short the pair. A move below 1.4700 may also inspire a bearish position. Weaker than expected exports has added weight to the sterling which is already under pressure due to the European debt crisis. The formation of the new government had provided a temporary boost, but the prospect of significant cuts in government spending has dimmed the outlook for domestic growth which could lead to additional Cable losses. My initial target is the 1.4475-5/7 low.
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