British Pound at Important Risk of Correction - When Might we Sell?
Video Summary: The British Pound has pulled back on weaker inflation data and several signs suggest an important correction is imminent. When might we sell?
- GBP/USD has seen a huge run that possibly is becoming stretched
- Weaker CPI data and a silent BoE puts pressure on a push higher in the cable
- After a large correction, a return of USD strength is bearish near-term for GBP/USD
British Pound Correlation to UK Government Bond Yields Grows Very Strong
Data source: Bloomberg
Chart source: R
Price Nears Critical Resistance as Momentum Remains Extremely Stretched in GBPUSD
Source: FXCM Trading Station Desktop, Prepared by David Rodriguez
Retail Forex Sentiment Has Pulled Back Somewhat but Remains Extremely One-sided
Source: FXCM Execution Desk Data, Chart Prepared by David Rodriguez
Data source: Bloomberg. Chart source: R SEE GUIDE ON READING THE ABOVE CHART
--- Written by David Rodriguez, Quantitative Strategist for DailyFX.com David specializes in automated trading strategies. Find out more about our automated sentiment-based strategies on DailyFX PLUS.
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DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.