These Three Factors Favor Continued British Pound Weakness
- British Pound breaking key lows on strong FX trading volume
- Clear links between Sterling and UK Yields helps explain part of the move
- Sharp swings in forex trader sentiment warn of continued losses.
The British Pound looks at risk of continued weakness as three key factors favor GBPUSD declines.
British Pound Breaks Key Support on Strong Volume, Points to Continuation Lower
Source: FXCM Trading Station Desktop, Prepared by David Rodriguez.
British Pound Yield Advantage Shrinks, Favors Dollar Strength
Data source: Bloomberg, Prepared by David Rodriguez
Retail Forex Traders Turn Net Long the British Pound
Source: FXCM Retail FX Positioning Data, Prepared by David Rodriguez.
Forex Correlations Summary
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.
Contact and follow David via Twitter: https://twitter.com/DRodriguezFX
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.