The British Pound has been making impressive progress, and not just against the US Dollar. Now, what does retail trader positioning say about where GBP/USD, GBP/JPY and EUR/GBP may go next?
British Pound Forecast: Proving Resilient, Bullish Breakouts in Progress
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British Pound Outlook:
Despite some weakness on the day, the British Pound has been noticeably resilient during the US Dollar’s recent rally – a good omen for future British Pound strength.
GBP/JPY and GBP/USD are in bullish breakout territory while EUR/GBP is below multi-month range support, suggesting that British Pound strength may be just getting started.
Retail trader positioning suggests a mixed bias to GBP rates.
Sterling Weathering the Storm
The UK is in unchartered waters, just weeks into its post-Brexit reality separated from the European Union. There have been some rude wakeup calls along the way, including the recent row over UK shellfish being banned from being sold in the EU. UK Prime Minister Boris Johnson has been criticized over his vaccine rollout plans as the B117 mutation spreads rapidly.
British Pound snapped a three week-winning streak with the Sterling rally stalling at technical resistance. Here are the levels that matter on the GBP/USD weekly chart.