CFDs are a leveraged product and can result in losses that exceed deposits. Please ensure you fully understand how CFDs work and what their risks are, and take care to manage your exposure. CFDs are a leveraged product and can result in losses that exceed deposits. Please ensure you fully understand how CFDs work and what their risks are, and take care to manage your exposure.

GBP/USD: Crashes into 1980s lows

Traders both large and small feel the squeeze as US dollar outperforms.

GBP/USD Technical analysis, overview, strategies, and levels

It was another volatile session for GBP/USD's price, this time the pound plunging to lows unseen since the 1980s, with both the pound the worst performer in the FX market against the remaining FX majors and simultaneously the US dollar topping the charts. That did well to aid conformist breakout strategies in line with its current volatile technical overview. Commodity and high-beta currencies were the underperformers against the sought after greenback. All its main technical indicators are flashing red, though with underlying fundamental shifts that are occurring globally has meant that pivot points are far less likely to hold, making contrarian strategies clear underperformers as of late waiting for the unsettled market to settle on a range.

Learn more about forex and forex trading.

IG client* and CoT sentiment for GBP/USD

The recent plummet has only acted to increase the squeeze on both retail and institutional traders who are both holding heavy to extreme long bias, the former's 78% extreme long bias yesterday now at 77%.

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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This information has been prepared by IG, a trading name of IG Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients.
CFDs are a leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your initial deposit, so please ensure that you fully understand the risks involved.

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