Trading sentiments for GBP/USD today: to buy above 1.3180 with targets 1.3350 and 1.3425. Alternative scenario: The downside breakout level of 1.3180 will open the way to 1.3110 and 1.3045.

Due to the forthcoming meeting of the Bank of England, the attention of market participants are still focused on the price dynamics of the British pound. After renewing the maximum in the Asian session GBP/USD corrected to 1.3336 to 1.3220. After a brief correction the pair has recovered to 1.3296. Currently pound against the US dollar is quoted at 1.3162.

GBP/USD Squeeze Won't Go Beyond 1.35 But The Context Matters

I’m struck at the enthusiasm of all and sundry to tell us that European and US growth rates will hardly be affected by the UK post-referendum slowdown.

That flies in the face of the increased correlation of major economies’ growth rates in an ever more connected world. You can’t have it both ways – if the world thrives post-Brexit, the UK won’t suffer that badly. Particularly if there is a strong fiscal policy response.

For now, the sterling short-squeeze goes on. I doubt GBP/USD can get through 1.35, but the context matters. The June 24 peak was 1.5020 (albeit in middle-of-the-night liquidity) and the low is just above 1.28, so a 50% retracement of the fall would be around 1.39....

SocGen maintains a short GBP/USD from 1.3750*

---

source

Waiting to see GBPUSD above 1.4

There is still a long way to go to 1.4 though. It doubt that will happen for weeks.

After rising the previous days GBP is losing ground, indicating a return to average values. The clearest manifestation of the weakness of sterling can be seen in the GBP/USD pair dynamics.

The British pound fell against the dollar on Friday. At the close of trading session GBP/USD is traded at 1.3179, shedding by 1.20%. I believe that the support is now located at the level of 1.2849, Monday's low, and resistance is likely to be at the level of 1.3481 - the maximum of Friday's trading.

Bearish on this one.

Time to become bullish

It might just be, The Pound broke 1.3200 level due to ''encouraging news''.