British Pound Once again at Risk of Turnaround
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GBPUSD– Retail FX traders have sold into the British Pound’s break higher versus the US Dollar, and a contrarian view of ‘crowd’ sentiment points to further GBP/USD gains. The key difficulty is that continued GBP failure near critical resistance of $1.3480-$1.3500 would keep the broader downtrend intact.
Going against the crowd means we prefer being long the GBP/USD, but we would ideally see a daily close above this key price ceiling before advocating for fresh long positions. Else we see distinct risk the British Pound will remain in a relatively narrow trading range versus the US Dollar through low-volatility market conditions.
See next currency section: USDJPY - US Dollar Remains a Sell versus Japanese Yen
--- Written by David Rodriguez, Senior Strategist for DailyFX.com
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DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.