British Pound Latest: GBP/USD Rally Continues, US Dollar Risks Lie Ahead

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British Pound Latest: GBP/USD Rally Continues, US Dollar Risks Lie Ahead
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Cable’s recovery from its multi-month lows printed in December continues with the pair pushing ever higher and back to levels last seen over two months ago. Get your market update from nickcawley1 here:

showed prices paid dropping sharply in December. On Friday the latest, monthly look at the US jobs market with Non-Farm Payrolls expected to nearly double the lowly November figure.Cable’s recent rally has seen it break a longer-term series of lower highs, and unless the pair fall back below 1.3162, the series of lower lows as well. The pair are now running into a cluster of old lows between 1.3570 and 1.3610 which may temper any move higher in the short term.

The number of traders net-long is 2.84% lower than yesterday and 14.58% lower from last week, while the number of traders net-short is 11.12% higher than yesterday and 15.30% higher from last week. We typically take a contrarian view to crowd sentiment, and the fact traders are net-long suggests GBP/USD prices may continue to fall.

Yet traders are less net-long than yesterday and compared with last week. Recent changes in sentiment warn that the

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