GBP/USD: CPI figures up next
Retail bias shifts to majority long as fresh shorts take profit.
GBP/USD Technical analysis, overview, strategies, and levels
With the US dollar outperforming and the pound underperforming in the FX market alongside high-beta and commodity currencies, GBP/USD's price was in for a negative finish that broke past yesterday’s 1st Support level before partially retracing back up (failing to reach the S/L level). Although more negative bias is forming with its price below all its main moving averages both long-term and short-term and a negative DMI (Directional Movement Index) cross occurring, we'll be getting more fundamental data today with CPI (Consumer Price Index) figures expected to drop. This follows yesterday's employment figures for February, which showed the unemployment rate rise to 4% and wage growth drop to 2.8%.
IG client* and CoT sentiment for GBP/USD
In sentiment, retail bias was in the middle, but with shorts getting out and longs initiating it has moved to a majority long 56%.
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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