Jordan Kotick at Barclays sees trouble ahead if we crack 1.63 and any daily close below will have us seeing 1.5850 in the coming weeks. In a client note he says to look for support at 1.6300/10 before a bounce and that the short term trend bias is negative and that cable has broken the July trend line.
GBP/USD daily chart 03 02 2014
He also notes that the DXY breaking above 81.50 would suggest that broad dollar buying is unfolding ( that picture is a bit mixed at the moment with USD/JPY under 102 again)
The pound is under the cosh today and for a multitude of reasons by the looks of things, There’s the data obviously, but it wasn’t that bad in my book, and a general risk off theme coming in again. The DXY is up but the dollar isn’t joining in all round.
