British Pound Could Rally into $1.7300

By DailyFx | Updated July 30, 2014 AAA

DailyFX.com - British Pound Could Rally into $1.7300

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

GBPUSD – Retail FX traders are selling aggressively into British Pound strength as the pair trades to a fresh post-financial crisis high. A contrarian view of crowd sentiment favors further gains.

Trade Implications – GBPUSD: The shift in sentiment was the major reason we called for a British Pound break above key highs in last week’s report, and indeed traders remain heavily short as the pair trades to fresh peaks.

There’s not much in the way of technical resistance for the GBP until the 50% retracement of its 2007-2008 decline near $1.7300. Until retail FX sentiment turns, we’ll remain in favor of Sterling strength.

See next currency section:USDJPY - Dollar Seems Likely to Bounce versus Yen

You May Also Like

COMPANIES IN THIS ARTICLE
Related Forex Analysis
  1. Forex News

    GBP/USD technicals supporting additional strength – FXStreet

  2. Forex News

    GBP/USD rises to 1.53 levels

  3. Forex News

    USD Weakness Sets in as GBP Extends, Readies for Gains

  4. Forex News

    GBP/USD firmer, closer to 1.5300

  5. Forex News

    GBP/USD: sentiment favours 1.53 levels – FXStreet

Trading Center