Flash: GBP/USD maintains negative long-term outlook – RBS

FXstreet.com (New York) - It is worth highlighting the GBP/USD break and retest of the uptrend since 2009, notes the FX Strategist Team at RBS.

Indeed, the retest did not get back up to touch the trendline and failed with a bearish outside week. We are down now just above the 61.8% at 1.4750 and this 1.4750/1.4835 area has to be the next main support level to watch – below there on a weekly close and not much until 1.4275.

Ultimately, “any rallies from this area should find resistance around the 1.5140 – possibly 1.5200 area. For the longer-term outlook this stays negative unless we get a weekly close in the future above 1.5625 now.” the team adds.

GBP/JPY bounces off support

The GBP/JPY technical cross has fallen during Asian trading Tuesday, after previously failing to breach the 151.00 level (150.98 session high).
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Flash: Only moderate interest in China’s June CPI - Westpac

According to Sean Callow, FX Strategist at Westpac, "There should be moderate interest in China’s June CPI today (1.30GMT), with consensus for an increase to 2.5% y/y from 2.1% in May." Callow adds "since inflation ex-food was only 1.6% y/y in May, shouldn’t be much higher in June, meaning inflation should have no implications for monetary policy."
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