British Pound Surges Post Bank of England, but Can it Hold Gains?
- A surprising Bank of England Inflation Report sent the British Pound sharply higher
- Forex technical studies nonetheless suggest the gains are overstretched
- Retail FX crowd sentiment warns of a potential near-term GBP top
Video Summary: Traders sent the British Pound sharply higher following the Bank of England Inflation report, but were the gains too much too soon? Two factors suggest they are.
British Pound Gains Look Overstretched Relative to 200-day Simple Moving Average
Source: FXCM Trading Station Desktop, Prepared by David Rodriguez.
Disparity Index indicator available on FXCMApps.com
Retail FX Sentiment Warns of a Potentially Significant GBPUSD Extreme
Data source:FXCM Execution Desk data, Prepared by David Rodriguez
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--- 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.