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10 Mar 2014
Flash: Sterling COT looks extreme - BBH
FXStreet (Barcelona) - Marc Chandler, Global Head of Currency Strategy at Brown Brothers Harriman notes that short-term market positioning, judging from the Commitment of Traders remains extreme for sterling.
Key Quotes
“This might help explain the market's cautiousness as sterling approached $1.68. There is a mild bearish divergence that is evident on the daily RSI. Support is seen $1.6640-60.”
“Separately, we note that the euro's downtrend against sterling from last August high near GBP0.8770 has been approached. We draw it coming in on Monday, March 10 near GBP0.8310, which is near the top of the Bollinger Band, and GBP0.8298 by the end of the week. While a convincing break has to be respected, we are bit wary.”
Key Quotes
“This might help explain the market's cautiousness as sterling approached $1.68. There is a mild bearish divergence that is evident on the daily RSI. Support is seen $1.6640-60.”
“Separately, we note that the euro's downtrend against sterling from last August high near GBP0.8770 has been approached. We draw it coming in on Monday, March 10 near GBP0.8310, which is near the top of the Bollinger Band, and GBP0.8298 by the end of the week. While a convincing break has to be respected, we are bit wary.”