British Pound Weekly Technical Forecast: Searching for Direction

Talking Points:

The British Pound continues to benefit from optimism over a ‘soft Brexit’ deal being reached.

– The worst performing GBP-crosses remain GBP/AUD and GBP/NZD amid a global rebound in higher yielding currencies and risk-correlated assets.

Retail trader positioning points to choppy trading for GBP/USD in the days ahead.

See our long-term forecasts for the British Pound and other major currencies with the DailyFX Trading Guides.

Technical Forecast for the British Pound: Neutral

The British Pound was a top performing currency last week, continuing to be fueled over optimism that a ‘soft Brexit’ deal will eventually be reached. Concurrently, with the US midterm elections in the rearview mirror, global equity markets returned to rally mode, allowing higher yielding currencies and risk-correlated assets to perform well. GBP/CAD and GBP/JPY were the top performing pairs, up by +0.79% and +0.57%, respectively. On the other end of the spectrum, the only two GBP-crosses to lose ground last week, GBP/AUD and GBP/NZD, fell by -0.44% and -1.13% each.

Even as the British Pound has outperformed its contemporaries in recent weeks, there’s no legitimate reason for gains besides hoping for

Article source: