GBP/USD Rates Buoyed By Extended Brexit Talks But Will Rally Last?

Nevertheless, breaching the December 10 high (1.3376) could neutralize near-term selling pressure and carve a path for price to probe the psychologically imposing 1.34 mark. Hurdling that would probably bring the resistance range at 1.3470 – 1.3480 into focus.

Alternatively, failure to hold above the trend-defining 50-MA (1.3337) may allow sellers to regain control and drive price back towards the 1.3300 mark. Breaking below would probably result in prices closing the gap and challenging support at the March high (1.3200).

GBP/USD Rates Buoyed by Extended Brexit Talks But Will Rally Last?

The IG Client Sentiment Report shows 40.83% of traders are net-long with the ratio of traders short to long at 1.45 to 1. The number of traders net-long is 0.18% lower than yesterday and 2.13% lower from last week, while the number of traders net-short is 2.90% higher than yesterday and 4.71% lower from last week.

We typically take a contrarian view to crowd sentiment, and the fact traders are net-short suggests GBP/USD prices may continue to rise.

Positioning is more net-short than yesterday but less net-short from last week. The combination of current sentiment and recent changes gives us a further mixed GBP/USD trading bias.

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