GBPUSD – Retail FX traders remain extremely long the British Pound versus the US Dollar, and until we see a turn in sentiment we’ll continue to call for further losses.
Trade Implications – GBPUSD: Yesterday we highlighted key signs which favored a potentially significant GBPUSD bounce. Yet setting price tops and bottoms is a messy process, and it seems as though we were early to call for a reversal. The Sterling will need to hold above key support at its 200-day Simple Moving Average near $1.6650 to have any confidence in a bounce, while we’ll likewise need to see a material turn in retail sentiment before calling for a short-term trend reversal.
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