GBP/USD: Awaiting the EU’s extension and a likely general election
Overall set to remain volatile in light of current events.
The latest in GBP/USD:
The European Union (EU) is likely to decide today or tomorrow regarding how long an extension it’ll grant before the Brexit divorce takes place, and depending on that decision the likelihood of a general election is rising.
GBP/USD Technical analysis, overview, strategies, and levels
Regardless of the outcome, while last week’s main pivot points weren’t reached as volatility dropped (compared to the two weeks prior to that), more announcements/uncertainty means that should the pivot points get breached, conformist strategies may be more ideal prior to initiating any contrarian reversals. In the absence of that however, the pair’s short-term and long-term bias is more bullish.
| Current Technical Overview | Volatile |
| Technical Overview Conformist Strategies | Buy 1st Resistance Upon Breakout From Below, Sell 1st Support Upon Breakout From Above |
| Technical Overview Contrarian Strategies | Sell 1st Resistance After Reversal, Buy 1st Support After Reversal |
| S/L for 2nd Resistance | 1.3122 |
| 2nd Resistance | 1.3062 |
| S/L for 1st Resistance | 1.3002 |
| 1st Resistance | 1.2943 |
| Relative Starting Point | 1.2823 |
| 1st Support | 1.2703 |
| S/L for 1st Support | 1.2644 |
| 2nd Support | 1.2584 |
| S/L for 2nd Support | 1.2524 |
IG client and CoT sentiment for GBP/USD
Lastly, in terms of sentiment the latest Commitment of Traders (CoT) figures show the bias dropping 8% as pound long positions rose by 10,318 lots and shorts were reduced by 10,194 lots, but the bias still remains heavy short for the time being, opposite retail traders who have upped their long bias to 57%.
GBP/USD Chart with retail and institutional sentiment
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