GBPUSD – A noteworthy intraday sell-off in the British Pound has been met with forex trading crowd buying; we remain in favor of selling GBPUSD against key resistance.
Trade Implications – GBPUSD: We wrote yesterday that low FX market volatility suggested the British Pound was unlikely to break above critical resistance at the $1.5610 mark, and indeed we believe it will continue to stick to a relatively narrow trading range. The fact that the majority of retail traders are currently short GBPUSD (short orders outnumber longs by 1.7 to 1) would normally leave us bullish, but we can’t ignore the pair’s rejection of its key price ceiling.
We remain in favor of selling any noteworthy GBP bounces as it holds key highs.
--- Written by David Rodriguez, Quantitative Strategist for DailyFX.com
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