CFDs are a leveraged product and can result in losses that exceed deposits. Please ensure you fully understand how CFDs work and what their risks are, and take care to manage your exposure. CFDs are a leveraged product and can result in losses that exceed deposits. Please ensure you fully understand how CFDs work and what their risks are, and take care to manage your exposure.

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.

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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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CFDs are a leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your initial deposit, so please ensure that you fully understand the risks involved.

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