GBP/USD: Pound a clear underperformer in the FX market
Daily overview turns more bearish, while weekly bull trend overview on the verge of shifting.
GBP/USD Technical analysis, overview, strategies, and levels
With European currencies underperforming in the FX market last week, the pound lost out more than the rest, ending the week lagging behind the other FX majors. That has thrown a wrench into its stalling bull trend overview on the weekly, needing little to shift to a more consolidatory outlook that’s starting to show more negative technical bias as its price hasn’t just broken its bull trend line, but also its 100-week and 200-week moving averages as well. Furthermore, rate cut likelihoods show a majority pricing in a rate cut out of the Bank of England this year.
IG client* and CoT sentiment for GBP/USD
As with EUR/USD, retail bias here has also surged higher and stands at an identical heavy long 74%, rising from the start of last week’s majority long 58% bias. On the institutional front, larger speculative traders according to the latest CoT (Commitment of Traders) report continue to show majority long bias, but have reduced that bias by 2% on a reduction in pound long positions by 2,228 lots and a rise in pound short positions by 2,474 lots.
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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