GBP/USD: Credit Agricole continues to recommend selling, as long as Brexit risks persist

In a note published today, CA discusses the current decline of the GBP/USD:

"The performance of the GBP against the USD is late compared to its performance against other G10 currencies.

Concerns about a Brexit continue to weigh on the GBP, and our indicators suggest that the short positioning increased last week and has now reached extreme levels.

However, the GBP/USD should remain on the decline as long as there is uncertainty regarding a Brexit. Afterwards, if that possibility erodes, today's strong short positioning leaves a large margin for an upturn, but we're not there yet."