The Sterling experienced a sharp decline during trading this week as a rising Brexit Campaign coupled with an unexpected contraction in the UK manufacturing PMI rekindled concerns over the state of the UK economy. Sentiment remains bearish towards the Sterling and the ongoing uncertainties surrounding the Brexit topic should haunt investor attraction towards the pound further. With economic data in the UK following a tepid path, the Bank of England has little incentive to raise UK rates and such could encourage bearish investors to attack prices lower. From a technical standpoint, The GBPUSD is turning bearish on the daily timeframe and a solid daily close below 1.4500 could open a path towards 1.400. Although prices are trading above the daily 20 SMA, the rejection at 1.477 could act as a beacon of hope for the bears.
This pair remains technically bearish as long the previous 112.50 lower high defends. The reinstated wave of risk aversion from the ongoing global woes should send the CHFJPY lower as appetite for the JPY receives a boost. A breakdown below 110.70 may open a path for a further decline towards 108.00 and potentially lower. Lagging indicators such as the moving averages and MACD which point to the downside also marry this daily bearish view on the CHFJPY.
The EURNZD is bullish on the daily time with support found below the 20 and 50 SMA. As long as 1.6100 defends well, bulls may be encouraged to send the EURZND towards 1.68 and potentially higher. A bearish move back below 1.6100 invalidates this daily bullish outlook.
The lingering anxieties over the immeasurable impacts of a Brexit to the UK economy have offered enough encouragement for bearish investors to continually attack the Sterling and this can be viewed in the GBPCHF. This pair is turning bearish on the daily timeframe as prices are trading below the daily 20 SMA while the MACD is in the process of trading to the downside. A breakdown below 1.380 should open a path towards 1.355.
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