GBPUSD Tech analysis by Simon Kazinsky on 11:29 May 18, 2018 EST
The dollar is strong against all major currencies. The dollar index seems to have resumed the strong uptrend that initiated four years ago. Not even the Swiss franc, the Japanese yen or oil are being able to keep up in the past weeks.
On the other side of the GBPUSD pair we have the sick man of Europe, Britain. Unable to grow its GDP as the rest of the leading countries of Europe while continuously pushing back the recovery to normal levels on interest rates as inflation remains stagnant. Public debt remains high and despite the public perception of massive cuts it is not being reduced in a significant manner.
We were just waiting for the technical signal to go short on the pair and this arrived at the time the pair lost the 1.37 level.
Trades are piling on longs on the pair, putting theirselves on the queue for further loses. Three out of four traders involved in GBPUSD are betting on a recovery. Opening the window and throwing bank notes onto the street appear a better investment idea.