FXStreet (Edinburgh) - The sterling is decoupling from its European peer on Monday, taking the GBP/USD to the 1.6780/85 band so far.

GBP/USD remains below 1.6800

The pound is extending its overnight consolidation pattern in the 1.6780/90 range, waiting for the key releases ahead in the week: labour market figures, Quarterly Inflation Report and Carney’s speech on Wednesday, prior to the GDP release on Friday (0.8% QoQ exp.). “We prefer to stay heavy on the pair pending further developments while on the CFTC front, note also that net leveraged GBP longs were pared significantly in the latest week (with net leveraged positioning as a percentage of open interest continuing to be exhumed from elevated levels). At this juncture, we think the bias may remain southbound within a 1.6690-1.6900 range”, observed Emmanuel Ng, FX Strategist at OCBC Bank.

GBP/USD relevant levels

At the moment the pair is up 0.07% at 1.6786 with the next hurdle at 1.6835 (high Aug.8) followed by 1.6857 (10-d MA) and then 1.6872 (high Aug.7). On the flip side, a breakdown of 1.6770 (low Aug.11) would aim for 1.6767 (low Aug.8) and finally 1.6740 (61.8% of 1.6460-1.7192).

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