GBP/USD: BoE likely to increase asset purchases
Pivot points likely to get tested on fundamental event, plenty of rising risks to address.
GBP/USD Technical analysis, overview, strategies, and levels
It's a fundamental day for the pound, as the Bank of England is set to announce its monetary policy whereby expectations are for an increase in its asset purchases by ₤100bn and keep rates unchanged at a record low 0.1%, even if the central bank is more open to negative rates than others. Economic data has been disappointing as of late, with last week's GDP (Gross Domestic Product) contraction worse than expected and yesterday's pricing figures a miss. There are also no-deal Brexit risks to consider as we approach the deadline. In terms of GBP/USD's price, it opted to oscillate yesterday within its key pivot points and failed to close below its 100-day moving average, with most of its main technical indicators neutral but combined with a trending ADX (Average Directional Movement Index).
IG client* and CoT sentiment for GBP/USD
Going into today's event retail traders are holding a slight 51% short bias, while last Friday's CoT (Commitment of Traders) speculators are at a heavy 65%.
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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