British Pound (GBP) Latest – GBP/USD Analysis

BoE hawk Catherine Mann is concerned about wage growth.Sterling's recent revival continues, 200-dsma provides support.

Recommended by Nick Cawley Get Your Free GBP Forecast Bank of England MPC policy member Catherine Mann, one of four rate-setters who voted to leave interest rates unchanged at the last central bank meeting, warned this weekend that inflation may rise again in the coming months. Speaking to the , Ms Mann said recent surveys suggest that, ‘There is an upwards ratchet to both the wage setting process and the price process and . . . it may well be structural, having been created during this period of very high inflation over the last couple of years” she added. “That ratchet up will take a long time to erode away.”

Ms Mann’s warning comes ahead of a busy economic release schedule with the latest UK employment, wages, inflation, and GDP data all set to be released over the coming days.

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GBP/USD touched a multi-week low of 1.2665 last week based on Sterling weakness and US dollar strength. The pair has pushed higher since, helped by a supportive 200-day simple moving average, and currently trades around 1.2770. Cable is trying to break out of a sharp one-month downtrend after printing a 13-month high of 1.3045 on July 17, and this week’s economic data will decide the pair’s future. Support remains around 1.2665, bolstered by the 200-dsma at 1.2661, while near-term resistance is around 1.2863.

GBP/USD Daily Price Chart

Retail trader data shows 51.94% of traders are net-long with the ratio of traders long to short at 1.08 to 1.The number of traders net-long is 0.92% higher than yesterday and 13.53% higher from last week, while the number of traders net-short is 0.44% higher than yesterday and 4.78% lower 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. Traders are further net-long than yesterday and last week, and the combination of current sentiment and recent changes gives us a stronger GBP/USD-bearish contrarian trading bias.

GBP/USD Mixed Data provided by of clients are net long. of clients are net short.