Price Forecast for the British Pound (GBP)Lull before the release of the National Accounts. Client sentiment suggests that the GBP/USD will continue to fall. The strength of the US dollar is pushing down a number of crosses, including the GBP/USD, ahead of the much expected US Jobs Report. Sterling is somewhat weaker against a variety of crosses, but the latest sell-off in cable is due to the greenback’s steady climb higher, which is now at a new 3-month high. The NFP report will be scrutinized not only for the headline figure – 700,000 new jobs are projected – but also for statistics on average hourly pay. Last month’s jobs data showed pay pressures rising, and this trend is projected to continue, bolstering the argument that the US’s present above-target inflation levels may prove to be more sticky than initially assumed. The number of new cases is rising dramatically, according to the most recent set of UK covid-19 statistics, as the Delta form runs uncontrolled. While the number of new cases continues to rise, mortality remain at an all-time low, and hospital admissions are increasing but not to the proportions seen in previous waves. The GBP/USD pair is still aiming for the downside, with 1.3670 acting as the next level of support. This level, which served as solid support in late March and early April, may be difficult to break. The UK economy is continuing its impressive recovery from post-pandemic lows, while inflation is already above goal and expected to rise further in the near future. GBP/USD has had a robust rally over the last year, and this trend upward is likely to resume as long as the series of higher highs and higher lows remains in place. Daily Price Chart for GBP/USD (April 2020 – July 2, 2021) According to retail trader data, 66.30 percent of traders are net-long, with a long-to-short ratio of 1.97 to 1. The number of traders who are net-long is up 4.85 percent from yesterday and up 32.81 percent from last week, while those who are net-short is up 1.41 percent from yesterday and down 22.70 percent from last week. We usually take the opposite side of popular sentiment, and the fact that traders are net-long on the GBP/USD signals that prices may continue to decrease. Traders are more net-long today than they were yesterday and last week, and the combination of current sentiment and recent movements offers us a greater contrarian trading inclination in the GBP/USD. Traders of all levels and abilities will find something useful in the new and updated platform to assist them make better judgments. Trading Education Center at DailyFX Is Sterling bullish or bearish in your opinion? You can contact the author on Twitter @nickcawley1 or by the form at the bottom of this article./n
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