Investors seeking momentum may have CurrencyShares British Pound Sterling Trust (FXB Quick QuoteFXB - Free Report) on radar now. The fund recently hit a new 52-week high. Shares of FXB are up approximately 13.7% from its 52-week low of $122.37/share.

But could there be more gains ahead for this ETF? Let’s take a look at the fund and the near-term outlook to get a better idea of where it might be headed.

FXB in Focus

FXB focuses on providing exposure to the British pound relative to the U.S. dollar, increasing in value when the pound strengthens and decreasing when the greenback rallies. This fund charges 40 basis points in fee per year and has AUM of $200.4 million (see all Currency ETFs here).

Why the Move?

Traders seem to be very bullish on the British pound. Per a Pound sterling live article citing data from the Commodity Futures Trading Commission, the net long GBP position increased to a near four-year high of $3.8 billion compared with $3.5 billion in the prior week. "Leveraged funds on CME increased GBP/USD net longs for a 5th week to 74.7k contracts at 10 April New York close. This is the most bullish stance since August 2014 and could extend given better Brexit mood and that the Bank of England is ready to hike," per Sean Callow from Westpac.

More Gains Ahead?

FXB has a Zacks ETF Rank #3 (Hold) with a Medium risk outlook. So, it is hard to get a handle on its returns one way or the other. However, it has a weighted alpha of 12.70. Although it doesn’t seem that appealing, recent strength in the sterling might push this ETF higher. So, there is a promising outlook for those who want to ride this surging ETF a little further.

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