British Pound Likely to Test Yearly Lows
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Trade Implications – GBPUSD: Traders have sent the GBP convincingly below its trend-defining 52-week moving average at $1.6550 and March lows near $1.6450. Retail traders remain near their most long the GBPUSD since it bottomed near $1.5000 in July, 2013, and we see little choice but to remain positioned for further Sterling weakness. Reversal risk is high, but the difficulty is that such shifts are only clear in hindsight. We’ll wait until concrete signs of reversal before changing tack.
See next currency section:USDJPY - US Dollar Poised for Further Appreciation versus Yen
--- Written by David Rodriguez, Quantitative Strategist for DailyFX.com
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DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.