GBPUSD : Lack of momentum and a changing US economic landscape
GBPUSD has traded below 1.2676 – the September 2020 spike low – with the next support level around 1.2585. The gains do not include the previous consolidation channel high of 1.2800 before the psychologically important level of 1.3000 emerges. The volatile price action that has occurred since the previous long-term trend was broken, highlighting the sensitivity to incoming news and the lack of bias.
Institutional money continues to support cable price increases, with net lengths continuing to hold steady. According to the most recent traders' data, the number of net short positions outweighs the net short positions in the pound as interest rate expectations keep the pound bullish. Earlier today, BoE economist Huw Pill signaled that he favors maintaining rates at higher levels rather than raising interest rates - noting the GBP is weakening in the interim.
Institutional money continues to support cable price increases, with net lengths continuing to hold steady. According to the most recent traders' data, the number of net short positions outweighs the net short positions in the pound as interest rate expectations keep the pound bullish. Earlier today, BoE economist Huw Pill signaled that he favors maintaining rates at higher levels rather than raising interest rates - noting the GBP is weakening in the interim.
