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: Majority long traders breathe a sigh of relief

Pound outperformed last week against a retreating greenback.

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

It was a significant week for the pound, whereby it was the outperformer against the remaining FX majors. That, combined with an underperforming US dollar sent GBP/USD's price surging back up and aiding last week's Weekly (and Daily) conformist breakout strategies by a healthy margin in line with its current volatile technical overview. In debt news, Fitch downgraded UK debt a notch to AA-, and expect further downgrades globally as deficits surge.

Learn more about forex and forex trading.

IG client* and CoT sentiment for GBP/USD

In sentiment, both retail and institutional traders breathed a sigh of relief on the moves, given they were both stuck holding big long positions prior to the squeeze down to the 1.14s, with extreme long retail bias of 77% last week dropping to 55%, and that of larger speculators according to the latest CoT (Commitment of Traders report) to 57% on a reduction in pound long positions by 10,041 lots outdoing a smaller reduction in short positions by 2,285 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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