British Pound Short Squeeze Imminent, HF Short Yen Trade cools: BAML

British pound is at oversold levels, hinting an impending short squeeze when the oversold positions are squeezed out. This is one of the conclusions that are drawn by BAML’s macro monitor. BofA clients have been selling British pound positions and as British pound rallies against the USD, stakes in GBP will be reclaimed by hedge funds. Research concludes that this would be a good time to enter the GBP trade as outflows reverse. BAML also notes that so far the short bets on GBP/USD have been losing as the GBP/USD pair has been trading on higher levels than before. Commodity traders had…