Pound looks overvalued, how to profit from it?

U.K. retail sales unexpectedly rose by the most since records began in 1986. So the retail sales bought the U.K. economy some time in the short run as it fuels their economy on a bit further.

Probably that was the hottest May ever recorded. So that really spurred a lot of clothing sales.

This month was a lucky month, retail sales rose 3.5 percent. That was some serious buying within 30 days time.

But this may not be sustainable for U.K. economy, here are the reasons why.

Housing prices have been falling. They had slided 9 percent this year alone. That is the worst drop in 15 years.

Central Bank chief Mervyn King says it has further to go. And he gets his hands on more real-time data than you or I could ever think of.

So falling house prices and higher food and energy costs are going to dampen consumer spending even more in the coming months.

The British have taken on a record 1.4 trillion pounds ($2.8 trillion) in debt. And those borrowing costs arent getting any cheaper.

In fact, just when the economists were predicting rate cuts, the bank surprised the market this month by holding rates steady. This will make it harder for individuals and corporations for the remainder of the year.

Bank of England minutes mentioned that lower growth will be necessary to have inflation return to the 2 percent inflation target. Then the same day, Chancellor Alistair adds in his own comments in a speech that reinforces this whole idea.

This means UK economy is headed for a slowdown and suggested that the impact of a worldwide squeeze on borrowing costs is continuing.

The pound could break higher in the short term, but in the long run, eroding fundamentals are going to drag down this slowing economy.

Technically GBP/USD tends to fall whenever Stochastic shows overbought on the Daily chart. It will then be a good trading strategy to buy UNDER bets on GBP/USD using Mansion platform.

Binary option trading is a safer way to trade forex, traders will not lose more than the capital that they have traded. UNDER in binary option is similar to buying a put option.

Try out the demo account. Minimum trade amount is US1.

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英国经济疲弱，我们认为英镑有进一步下滑的机会，原因是：

房屋价格已经下降。仅今年就以经下降了9 ％。这是15年来最严重的下降。

房价下降和较高的食品与能源成本将会打击消费者的消费能力。

英国已拥有创纪录的债务，而那些借的利息并不便宜。

英伦银行提到如果要通货膨胀回到2 ％的目标，经济增长将需要放缓。

这意味着英国经济将走向放缓的步伐，将拖动英镑/美元下跌。

每当英镑/美元在技术图表处于超买时，英镑/美元下降的机会就很高。一个很好的交易策略就是在金融投注买下。