This website uses cookies to ensure you get the best experience on our website

Blog

Date:
02nd Mar 2021
Author:
Dalmas Ngetich, for CryptoAltum News Team

GBP Net Longs Extended, Leveraged Funds Slash their USD Shorts

The Pound has been the top performer in the last few weeks. It is buoyed by an array of several fundamentals, including the successful rollout of coronavirus vaccines and the general reduction in political risks after the Brexit kinks were ironed out. Accordingly, the GBP is trading at a three-year high versus the greenback in a bullish breakout pattern. Following gains of last week, the United States Commodity Trading Futures Commission (CFTC) data revealed that traders cut back their USD shorts versus G10 currencies.


Details: 

The USD posted their strongest performance in four months following last week's resurgence, unshackling themselves from sellers' grip. Consequently, and as expected, the unwinding of USD short bets, mostly by leveraged funds, solidifies the USD's Launchpad against major currencies, including the GBP. There is a tinge of overvaluation. As such, if the GBP fails to reverse last week's losses, the resulting correction could be deeper. It will be even if the Chancellor may extend the furlough scheme and level out with the population ahead of the scheduled reopening. 


Impact on the GBP: 

Bearish. Like JPY and Euro traders, both smart and fast money are cutting back on USD longs despite inflation fears in the long term. A correction of the current overvaluation may unwind GBP bullish steps, paving the way for the USD to recoup losses in 2020.


More market news over on our Blog


Risk Disclosure: Trading cryptocurrencies or any other financial instrument involves a significant level of risk and may result in a total loss of your investment. You should consider carefully whether investing in Bitcoin or any other instrument offered by CryptoAltum is appropriate to your financial situation. CryptoAltum only accepts deposits in Cryptocurrencies. By trading with CryptoAltum you acknowledge your understanding of this risk disclosure and your agreement with the Terms and Conditions.
  • Copyright Excel Innovations Ltd (CryptoAltum) 2020