The Pound moves lower after the meek attempt to turn the tide last Thursday and Friday into month-end. Economists at Société Générale analyze GBP/USD outlook. 

CFTC longs collapse to 6.9% of OI last week from 17.6%

Cable faces a battle to stay above 1.20 in October unless US bond yields stage a dramatic U-turn.

Hedge funds slashed sterling long positions to 6.9% last week from 17.6% of OI before the BoE. The decline by almost 11ppt is the largest since November 2021 when GBP/USD dropped two big figures from 1.36 to 1.34.