Sterling Bulls Face Key Test at Jackson Hole

The pound's recent surge above its July 28 low of 1.33 may be short-lived, according to eFXdata analysis.

A key test for sterling bulls is looming as market liquidity dries up and the Fed's Jackson Hole Symposium approaches.

GBP/USD has struggled to break past the six-month high of 1.3675, with repeated failures to sustain gains in the mid-1.36s indicating a possible capitulation among sterling bulls.

The net speculative short positioning in the IMM futures has only marginally decreased, from -64.8k contracts to -54.6k by August 18, suggesting that the bullish phase may be transitory.