British Pound Breakdown Confirmed, Look for Losses

By DailyFx | Updated July 31, 2014 AAA

DailyFX.com - British Pound Breakdown Confirmed, Look for Losses

Receive the Weekly Speculative Sentiment Index report via PDF via David’s e-mail distribution list.

GBPUSD – A substantial reversal in the British Pound produced a similarly significant turn in sentiment, and our retail FX positioning data points to further GBPUSD declines.

Trade Implications – GBPUSD: Last week we noted that a shift in crowd sentiment helped confirm an important Sterling turn lower, and indeed our sample shows that the trading herd is now net-long the GBPUSD for the first time since it traded near $1.55 in August, 2013.

The difficulty is now finding an attractive entry point for a short position. The GBPUSD has now fallen in 14 of the past 16 trading days, and momentum is clearly stretched. We remain bearish as long as price remains below $1.70, and there’s little significant support before June lows near $1.67.

See next currency section:USDJPY - Key Factors Favor a Much Larger USDJPY Breakout

You May Also Like

COMPANIES IN THIS ARTICLE
Related Forex Analysis
  1. Forex News

    Double Top reversal in GBP/USD hourly chart – FXStreet

  2. Forex News

    GBP/USD bullish above 1.5265 – Varengold

  3. Forex News

    GBP/USD consolidates above 20-DMA, awaits fresh incentives

  4. Forex News

    GBP/USD Technical Analysis: Digestion Below 1.53 Continues

  5. Forex News

    GBP: Fed volatility within 50 pip range, scores ground on 1.52 handle

Trading Center