GBP/USD: 1.28 fake breakout pushes the pair lower!

TECHNICALS:
The GBP/USD pair failed to break above the 1.28 resistance and started to print a massive bearish candle on the daily chart.

The 1-hour chart is even more interesting, as it shows a break below a well-defined rising channel and a pullback to that level, which has been rejected immediately.

My traders and I are short on the pair since this morning.

INTEREST RATES:
2y yield differentials have been showing a strong divergence for quite some time, supporting our bearish view at the moment.

RISK SENTIMENT:
Since the pound was nicely following risk-on flows in the recent period, today's risk-off flows (with major stock indices down and VIX up) could accelerate a sell-off in the GBP and increase demand for the USD, support a bearish stance.

POSITIONING:
Finally, the latest futures positioning data showed a massive increase in GBP bearish bets and an overall bearish bias on the currency.

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