TECHNICALS:
The GBP/USD pair failed to break above the 1.28 resistance and started to print a massive bearish candle on the daily chart.
The 1-hour chart is even more interesting, as it shows a break below a well-defined rising channel and a pullback to that level, which has been rejected immediately.
My traders and I are short on the pair since this morning.
INTEREST RATES:
2y yield differentials have been showing a strong divergence for quite some time, supporting our bearish view at the moment.
RISK SENTIMENT:
Since the pound was nicely following risk-on flows in the recent period, today's risk-off flows (with major stock indices down and VIX up) could accelerate a sell-off in the GBP and increase demand for the USD, support a bearish stance.
POSITIONING:
Finally, the latest futures positioning data showed a massive increase in GBP bearish bets and an overall bearish bias on the currency.
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The GBP/USD pair failed to break above the 1.28 resistance and started to print a massive bearish candle on the daily chart.
The 1-hour chart is even more interesting, as it shows a break below a well-defined rising channel and a pullback to that level, which has been rejected immediately.
My traders and I are short on the pair since this morning.
INTEREST RATES:
2y yield differentials have been showing a strong divergence for quite some time, supporting our bearish view at the moment.
RISK SENTIMENT:
Since the pound was nicely following risk-on flows in the recent period, today's risk-off flows (with major stock indices down and VIX up) could accelerate a sell-off in the GBP and increase demand for the USD, support a bearish stance.
POSITIONING:
Finally, the latest futures positioning data showed a massive increase in GBP bearish bets and an overall bearish bias on the currency.
Please hit the "LIKE" button to support our work. Thanks!
