GBP Trading Outlook (12-07-2011)

The Sterling (GBP) was weaker as risk aversion overwhelmed support seen from EUR/GBP selling and Cable broke back below 1.6000 to 1.5900. The outlook is negative with the downtrend only consolidating last week and fresh multi week lows seen overnight. Overall the GBP/USD traded with a low of 1.5880 and a high of 1.6043 before closing the day at 1.5910 in the New York session. Looking ahead, June CPI forecast unchanged at 4.5% y/y.

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