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What To Do With GBP Next Week?
For most of the week the GBP was under pressure, mainly on the back of somewhat weaker than expected industrial production data. However, we still expect dips in pairs such as GBP/USD to remain a buy. First of all relatively balanced speculative positioning does not suggest that there is room for the currency to drop much further on the back of profit taking. At the same time fresh selling demand is unlikely to emerge should incoming growth data indicate an on-going recovery. Although there is the risk for growth momentum to moderate on a high level, we expect the recovery to remain intact. This in turn suggests that ... (full story)
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