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: Fears of a hard Brexit test the pound’s recent gains

Bull trend technical overview needing little to shift, volatility breakout strategies outperform

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

The bullish technicals in GBP/USD were in built on last week's UK parliamentary election outcome, but since then those moves have been undone, and befitting a more volatile outlook enticing breakout strategies over fading ones. On the daily, while it’s still a stalling bull trend where its price is above all its main long-term moving averages, with a positive DMI (Directional Movement Index), and a trending ADX (Average Directional Index), breakout strategies have been more ideal given the increased volatility until things calm down. UK employment data was worse than expected, but its unemployment rate remained at 3.8%. CPI (Consumer Price Index) figures are up next today, and then it's the BoE (Bank of England) tomorrow.

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IG client and CoT sentiment for GBP/USD

In sentiment, retail bias has risen 6% to a heavy long 65% as fresh shorts get enticed into closing out and longs initiate.

GBP/USD Chart with retail and institutional sentiment

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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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