GBP/USD hangs near 45 days lows, NFP awaited.
USD index shot to fresh three-month tops and remained well supported by speculations that the Fed will tighten its monetary policy sooner than anticipated.
Investors seemed reluctant to place aggressive bets ahead of the US monthly jobs report (NFP).
NFP report could influence the Fed's monetary policy outlook and play a key role in driving the greenback in the near term.
The economic calendar is pointing to an increase of 690,000 jobs, better than May's 559,000 and alongside a drop in the Unemployment Rate to 5.6%.
The British pound was weighed down by the overnight dovish comments by the BoE Governor, Andrew Bailey, saying that the central bank should not Overreact to temporarily strong inflation.
Worries about the spread of the more contagious Delta variant of the coronavirus, acted as a headwind for the sterling.
The basic fundamentals of GBP have not changed – the US economy is still growing quickly and the Fed is set to withdraw some of its support.
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Retail traders hold Buy and they are contrary to the trend.
Speculators and hedge funds are net-long but their long positions have decreased 44% in this week according to the COT report. It is a significant sign of a bearish market.
The technical indicator of Intelligent Cci, is showing the sell. Support1 is broken at the Statistical Support Resistance indicator so, it is another sell signal.