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### POV: GBPUSD ABOUT TO BREAK THE TREND -....>

CABLE
CABLE: ### POV: GBPUSD ABOUT TO BREAK THE TREND
- The stronger USD theme continues to pressure which could see GBPUSD break its
seasonal pattern of 13 straight April gains
- Since printing post Brexit highs of 1.4377, GBPUSD has fallen close to 500
pips and is currently showing losses of 0.66% in April.
- Month-end bank FX portfolio rebalancing models suggest mild USD buying against
GBP.
- The run of poor UK data could continue with today's GDP release, the risk is a
miss to the downside with soft PMI's and the UK still feeling the effects of the
recent cold snap.
- Should GBPUSD reverse the trend and post positive gains in April, markets then
look towards the next seasonal theme in May where the currency pair has fallen
11 of the last 13 years.
- The risk for bears is now that GBP is in oversold territory the 100-dma at
$1.3871 could provide key support and limit further downside moves.

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