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 sentiment shift helps bullish case

Cable is on the rise as traders are fading the break higher; this may bode well for higher prices in the days ahead.

GBP/USD sentiment, price, and analysis

  • GBP/USD trading at its best levels since early June
  • Client position changes supportive of further gains

The British pound is rallying versus the US dollar, and with broad USD weakness becoming a central theme we may see further upside in GBP/USD in the days ahead. Recent changes in trader positioning data further backs the notion a breakout may be sustainable.

GBP/USD IG Client Sentiment

The IG Client Sentiment index (IGCS) show retail traders selling into multi-week highs, with only 41.55% net-long. The number of traders net-long is 6.60% lower than yesterday and 6.37% lower from last week, while the number of traders net-short is 28.14% higher than yesterday and 9.40% higher from last week. This suggests that traders aren’t so much lessening their long positions but outright shorting the pair.

We typically take a contrarian view to crowd sentiment, and the fact traders are net-short and increasing these bets suggests GBP/USD prices may continue to rise.

Find out more about forex trading


GBP/USD technical outlook

Supporting the sentiment outlook is the fact that cable is trading at its best levels since the early part of June. It is also trying to cross above the 200-day moving average (MA), a threshold it has struggled with on a few occasions since April. A daily close above the long-term moving average could quickly lead to a rise to the June high at 12,813, where we will have to evaluate whether it will take out resistance (strong momentum) or turn back lower again (weakening momentum).

GBP/USD daily chart

This information has been prepared by IG, a trading name of IG Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients.
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.

Start trading forex today

Find opportunity on the world’s most-traded – and most-volatile – financial market

  • Trade spreads from just 0.6 points on EUR/USD
  • Analyse with clear, fast charts
  • Speculate wherever you are with our intuitive mobile apps

See an FX opportunity?

Try a risk-free trade in your demo account, and see whether you’re onto something.

  • Log in to your demo
  • Try a risk-free trade
  • See whether your hunch pays off

See an FX opportunity?

Don’t miss your chance – upgrade to a live account to take advantage.

  • Get spreads from just 0.6 points on popular pairs
  • Analyse and deal seamlessly on fast, intuitive charts
  • See and react to breaking news in-platform

See an FX opportunity?

Don’t miss your chance. Log in to take your position.

Live prices on most popular markets

  • Forex
  • Shares
  • Indices

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.

Plan your trading week

Get the week’s market-moving news sent directly to your inbox every Friday. The Week Ahead gives you a full calendar of upcoming economic events, as well as commentary from our expert analysts on the key markets to watch.

For more info on how we might use your data, see our privacy notice and access policy and privacy webpage.

You might be interested in…

Find out what charges your trades could incur with our transparent fee structure.

Discover why so many clients choose us, and what makes us a world-leading provider of CFDs.

Stay on top of upcoming market-moving events with our customisable economic calendar.