More Presssure on GBP

[ForexBrokerInc 10]

Despite recent claims that UK economy is doing better relative to other European economies, hence have to pay additional 1.7 billion Pounds into the European Union budget, the Pound can’t seem to be finding its strength to rise vs Dollar and other major currencies.

 

Will it get worse?

 

German Chancellor Angela Merkel warned the UK Prime Minister David Cameron that she would rather see the UK leave the EU than compromise over the principle of free movement and that Britain is approaching ‘the point of no return’.

 

Such strong statement by the German Chancellor will never have a good impact on the British Pound, nor in fact on the Euro.

 

Investors will surely be watching the proceedings of the UK Prime Minister in the coming days.

 

Technically speaking as of Monday morning, GBPUSD is at the psychological resistance level of 1.60. Still however, the pair is traded in the bearish rectangle and as long the market does not break and stay above the psychological level of 1.6000 in the coming hours and days, we should expect further movement to the down side. Targeting 1.5750 area.

[lukepearson 10]

Zak Mir, technical analyst for shareprofits.com, and Alessio Rastani, independent market trader with leadingtrader.com, opened the show at Tip TV and discussed sterling, yen and some single stocks. GBP/AUD and GBP/CAD trend to continue Rastani began by noting the GBP’s current strength, alongside AUD and CAD extending weakness, he believes the trend will continue and it is best to stay long on the sterling crosses. Japan QE to continue Looking to Japan, Rastani noted that the Japanese yen will continue to get weaker in the long term as the government continue to print money. As a consequence, he can’t see any other direction for the Nikkei and Japanese stocks but continue to rise higher. - See more at: Markets outlook: Sterling to remain strong while yen weakens - Tip TV