GBP/USD: Conflicting technicals ahead of tomorrow’s GDP data
Price crosses back below its 50-day moving average in what has been weeks of relatively rangebound movement.
GBP/USD Technical analysis, overview, strategies, and levels
With the US dollar outperforming against the remaining FX majors yesterday, GBP/USD's price was in for a drop back below its 50-day moving average (MA), and in turn back below all its main moving averages. The technicals are conflicting here, with a positive DMI (Directional Movement Index) and a trending ADX (Average Directional Index). A moving average cross is also close to occurring with the 100-day MA just above the 200-day. There isn't much to rely on in terms of economic data today out of the UK before tomorrow's preliminary GDP (Gross Domestic Product) reading, with focus likely to be more on US data instead.
IG client* and CoT sentiment for GBP/USD
Unlike EUR/USD traders who reduced their long bias on the price drop, here retail long bias has risen to 62%, opposite that of larger speculative traders opting for a majority short bias in the pound.
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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