GBP/USD: CoT speculators squeezed by latest price moves
Retail bias shifts to majority short while CoT short bias rises into heavy sell territory.
GBP/USD Technical analysis, overview, strategies, and levels
With commodity and risk-related currencies outperforming last week, that mean GBP/USD's price was in for another significant rebound to cross and finish above its 50-week moving average and breach last week's 1st Resistance level that eventually aided breakout over reversal strategies. This week's US central bank announcement could keep the US dollar volatile, as well as further risk-on moves aiding the pound and possibly denting the greenback even further.
IG client* and CoT sentiment for GBP/USD
In sentiment, retail bias has shifted from a majority long 58% at the start of last week to a now majority short 55% as longs closed out and shorts initiated. And they aren't the only ones squeezed by the recent upside movement, as the latest CoT (Commitment of Traders) report shows majority short bias amongst larger speculators surge into heavy short territory on a reduction in pound longs by 12,222 lots and a simultaneous increase in shorts by 1,565 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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