Pound Sterling's uptrend against the Dollar could experience a deeper setback this week if U.S. labour market data beat expectations.
The Dollar looks set to bounce back following a period of sustained losses, say strategists at HSBC, who think the Pound is particularly vulnerable.
The British Pound is unwinding overbought conditions and could fall further in the short term; however, the bigger picture still favours the upside in the coming weeks.
Pound Sterling has recorded a new two-year high against the Dollar amidst a rejuvenated global equity market rally with one market professional saying any weakness will only invite more buying interest.