FXStreet (Orlando) – The GBP/USD’s recovery from the 1.5250 area has been capped at 1.5300 just ahead the weekly close with the pair trading back to 1.5280. GBP/USD is closing its sixth negative day in a row; second weekly decline consecutive.
In less than two weeks the Cable erased all its post-election gains. More precisely, the GBP/USD fell over 500 pips from May 14 highs at 1.5815 to today’s lows 1.5285.
In the daily basis, GBP/USD is trading at 1.5290, down 0.16% on the day, having posted a daily high at 1.5345 and low at 1.5236. The hourly FXStreet OB/OS Index is showing neutral conditions, alongside the FXStreet Trend Index which is slightly bearish.
British Pound to Dollar Forecast
Jameel Ahmad from FXTM commented in the recently published GBPUSD Forecast Poll that “the close below 1.55 was a critical blow for the bulls, and the bears have exploited each opportunity to price in further declines.”
Richard Perry also pointed out that “the dollar bulls in control now are dragging Cable towards $1.5090.” However, Perry expects “Cable to be choppy in the coming months with little real direction as both the UK and US move towards tightening.”
Overall, the GBP/USD Forecast Poll says as conclusion that the GBP/USD is waiting for a break below 1.5000: “sentiment towards the Pound turned negative after the latest retracement that erased all of its post-election gains.”
GBP/USD levels
As for the short term, if the GBP/USD extends 1.5300 rejection, it will find supports at 1.5250 and 1.5230. To the upside, resistances are at 1.5300, 1.5320 and 1.5340.
For you information, Forex futures market speculative positioning data from the CoT CFTC report says that short interest in the GBP has increased in the last week: GBP net short 26K vs. short 23K prior.
(Market News Provided by FXstreet)