GBP/USD: CoT traders continue to up their majority short bias
GDP figures out of the UK will be released on Wednesday
GBP/USD Technical analysis, overview, strategies, and levels
GBP/USD's price failed to live up to expectations of increased volatility, even after last Thursday's central bank decision whereby the Bank of England (BoE) opted to keep monetary policy unchanged. Most of its key technical indicators on the weekly (and daily) are now neutral, both still showing a trending ADX (Average Directional Index) the absence of which has tested momentum breakout strategies. The technical overview while shifting back to consolidatory is at risk of easily shifting again, due to the proximity of its key indicators to each other and the pair’s price that could produce false signals.
IG client* and CoT sentiment for GBP/USD
As for trader bias, larger speculative traders according to the latest CoT (Commitment of Traders) report continue to up their majority short bias, with an increase in pound shorts by 1,954 lots and a simultaneous reduction in longs by 3,370 lots taking it up to 59%, near opposite that of retail traders.
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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