British Pound Likely to Fall Further
GBPUSD – Forex trading crowds are aggressively net-long the British Pound against the US Dollar for the first time since early March, and as with the Euro/US Dollar we believe the pair may have set a significant reversal. Just last week we wrote that a sustained break above $1.60 seemed unlikely, and we stand by that forecast. A further gain in retail trading crowd long positions would add credence to our GBPUSD-bearish views, and $1.5770 seems the next important support level to watch on the GBPUSD.
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--- Written by David Rodriguez, Quantitative Strategist for DailyFX.com
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