GBP/USD: Macro Bullish Trend Still In Place

If you are a swing trader looking for opportunities in the currency market, the recent pullback in the Sterling is worth monitoring. The strong bullish trend in US yields doesn’t make the USD the best market to capitalize the potential return of GBP demand, so pay attention to GBP vs AUD, JPY, CAD on the basis of ‘risk on’ conditions (negative JPY) and AUD, CAD (negative fundamentals). With such a powerful movement in the DXY and the UK vs US yield spread, it’s hard to justify much higher levels in GBP/USD at this stage, which is not the case if looking to play GBP longs vs above-mentioned currencies. Remember, the GBP is the market with the strongest macro bullish trend out there, that’s why picking the right timing to engage in a buy-side campaign could yield great opportunities.