British Pound Sets Stage for Breakdown
Retail FX trading crowd sentiment remains effectively neutral on the range-bound British Pound/US Dollar pair, and little movement in both price and positioning gives little reason to expect a major breakout. Our Senior Technical Strategist nonetheless believes that a British Pound breakout is just around the corner, as recently choppy price action may prove a sideways correction ahead of the next major move lower.
Trading below yesterday’s European session low of $1.5570 would give reason to call for further short-term declines from a technical perspective. As far as our sentiment-based trading strategies go, we will need to see a larger shift in retail positioning before calling for a breakdown with any real conviction.
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--- Written by David Rodriguez, Quantitative Strategist for DailyFX.com
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DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.