Neutral Outlook as Pound Rally Stalls, Retail Moderates Positioning

GBPUSD – Retail FX traders remain heavily short the British Pound against the US Dollar, but the recent moderation in positioning as the pair has stalled call for a neutral bias.

Trade Implications – GBPUSD: UK economic data has started to plateau from recent impressive peaks, and with an important December sales report due tomorrow, we may see a short-term resolution to the technical skirmish evident on the charts. The GBPUSD is currently pressing support as the ascending trendline off of the July and November lows near 1.6300/50 – a quick shift in sentiment will be key to watch to determine the viability of a rebound or breakdown from here.

--- Written by Christopher Vecchio, Currency Analyst

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