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Cloudy Skies Ahead in Britain: Strategist

LONDON - OCTOBER 28: Clouds gather over high-rise buildings in the financial district of the Canary Wharf area of East London as workers remain in their offices as the day light hours shorten on October 28, 2008 in London, England. The world's financial firms have now lost 1.8 trillion GBP as a result of the continuing credit crisis according to figures estimated by the Bank of England. (Photo by Matt Cardy/Getty Images)
Matt Cardy
LONDON - OCTOBER 28: Clouds gather over high-rise buildings in the financial district of the Canary Wharf area of East London as workers remain in their offices as the day light hours shorten on October 28, 2008 in London, England. The world's financial firms have now lost 1.8 trillion GBP as a result of the continuing credit crisis according to figures estimated by the Bank of England. (Photo by Matt Cardy/Getty Images)

The latest Spanish debt auction went better than expected, but this strategist sees other risks looming.

Investors breathed sighs of relief after Spain managed a less-than-awful debt auction, but Andrew Busch, global currency and public policy strategist for BMO Capital, thinks there are more risks looming.

Thursday brings a longer-term Spanish bond sale, of course, and that will "reflect more of the risks that are out there on a long-term basis for Spain," he says. "There's still some pain to come." He's also watching a wave of new data due in Britain: minutes from the Bank of England meeting and unemployment data.

"If any of these come out more dovish, I would expect the U.K.'s British pound to weaken," Busch told CNBC's Michelle Caruso-Cabrera, but he is focused on how the market responds to all the news. "If the market shows to me that we get as-expected data and the pound softens, I really want to sell it."

Busch recommends selling the pound against the dollar at 1.5950 with a stop at 1.6025 and a target of 1.5650.

You can watch the analysis on this video.

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