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Sterling ETF Hit by Heavy Redemptions Even as Pound Holds Its Ground

Sterling ETF Hit by Heavy Redemptions Even as Pound Holds Its Ground

Sterling Sentiment Sours: Invesco’s Pound ETF Sees Sharp Single‑Day Exodus

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The Invesco CurrencyShares British Pound Sterling Trust (FXB) faced a notable pullback on January 21, 2026, as investors withdrew roughly $6.47 million from the fund. The outflow represents about 9.1% of FXB’s latest reported assets under management, which now stand at approximately $71.3 million, underscoring a sizable bout of profit‑taking or risk reduction in a single session.

The move comes despite a relatively constructive backdrop for the underlying currency. The related asset, FX:GBP-USD, is trading around 1.36464, up about 2.56% over the past three months as the pound has quietly appreciated against the dollar. Short‑term indicators remain upbeat: the 1-day technical signal is flashing a bullish tone, currently rated as Strong Buy.

The disconnect between FXB’s outflows and the constructive technical profile of GBP/USD suggests that macro positioning, hedging strategies, or broader risk-off sentiment may be driving investor decisions more than near-term price action. With a meaningful slice of AUM exiting in one day, the flow data hint at a shift in how investors are expressing their views on sterling, even as the currency’s trend remains modestly positive.

For a more detailed analysis and real-time sentiment trends, check the live currency exchange rates here.

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