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British Pound Once again at Risk of Turnaround

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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Contact David via Twitter at https://www.twitter.com/DRodriguezFX

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