GBP Falls to Three-Week Low Amid Crédit Agricole's Overbought Warning

The British Pound to US Dollar (GBP/USD) exchange rate has fallen to a three-week low, reaching 1.3480 on Monday.

This decline has brought attention to Crédit Agricole's warning that the Pound remains overbought against the US Dollar.

In a recent update, the bank's model identified the GBP as overbought and suggested that further buying may be difficult to sustain.

The model's signal followed a profitable week for the bank's contrarian strategy, which made a profit of 0.82% by being short on GBP/USD and long on USD/CHF last week.

Despite the warning, Crédit Agricole did not initiate a fresh short position, citing that Monday was a UK bank holiday and the normal conditions required to generate a trade were not satisfied.