GBP/USD: Finance Minister unveils ₤30bn stimulus package
Retail bias shifts from majority long to majority short.
GBP/USD Technical analysis, overview, strategies, and levels
With the pound outperforming against the greenback (and most of the FX majors), sell-on-reversal strategies offered less on yesterday's 1st Resistance level, the level getting hurt this morning as the US dollar generally weakens. There wasn't any data to go on out of the UK, the Finance Minister releasing a 'mini-budget' yesterday with stimulus worth ₤30bn. Four days of consecutive gains have given its technical overview more positive bias, and with its 200-day moving average not that far off at this stage and combined with a trending ADX (Average Directional Movement Index) may entice contrarian breakouts over conformist reversals should we get more follow through this time around.
IG client* and CoT sentiment for GBP/USD
In sentiment, the price gains have resulted in a shift in retail bias, from a previous slight majority long 52% to a now slight majority short 52%.
GBP/USD Chart with retail and institutional sentiment
*The percentage of IG client accounts with positions in this market that are currently long or short. Calculated to the nearest 1%, as of today morning 8am.
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