GBP sell-off can extend further

From the FXWW Chatroom: The largest mover Tuesday was GBP, with Cable breaking 1.30 on the downside for the first time since mid-August. We remain broadly bearish on Sterling. Short GBP positioning was squeezed considerably over the past month, from -46 to -34 according to BNP Paribas FX Positioning Analysis, as UK data surprised to the upside. Our short-term fair value model BNP Paribas STEER™ signalled that this positioning squeeze had pushed GBP beyond its short-term fair value – STEER for GBPUSD currently stands at 1.2896.

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