GBPUSD Technical Analysis – 1.1800 Test Coming?

The British pound currency has continued to fall against the US dollar as the greenback rallies broadly on the currency market due to the notion that Fed members are turning more hawkish on rates.

On the back of this, US Treasury bond yields begin to reflect higher rates, with investors lifting US Treasury bond yields, with the 10-year well above the 4 percent threshold.

Sterling traders also digest comments from the Bank of England’s Chief economist and await PMI data from both the United States and the United Kingdom later today.

For some time now the GBPUSD pair has been trapped in a short-term range of 1.1900 to 1.2100, with the price action looking increasingly bearish on upside attempts.

It can also be said that short-term picture depicts a range of 1.1800 to 1.2400. The risk would be for sterling to break its established range and breaking much lower if 1.1800 cracks soon.

Looking at sentiment data and how traders feel about sterling, the ActivTrader Market Sentiment tool shows that traders are growing more bearish despite the recent sharp price reversal.

With 60% of traders currently bullish it should be noted that this current sentiment reading is highlighting that sterling still has much scope to trade even lower also.