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GBPUSD– Retail FX traders have bought aggressively into recent British Pound losses versus the US Dollar, and a contrarian view of crowd sentiment points to further GBP/USD weakness. Yet retail traders will often do well in slow-moving and range-bound trading conditions. The fact that the British Pound remains stuck in a tight range suggests that traders could do well buying low and selling high.
We may need to see a major jump in FX market volatility to call for a much larger GBP/USD breakdown.
See next currency section: USDJPY - Japanese Yen Forecast to Rally until this Changes
--- Written by David Rodriguez, Quantitative Strategist for DailyFX.com
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