GBP/USD: Manufacturing PMIs up next
UK data disappointed yesterday, but we’ve got more data today that could affect both the pound and greenback.
GBP/USD Technical analysis, overview, strategies, and levels
The pound was in for a session of outperformance in the FX market, taking GBP/USD's price breaching yesterday's 1st Resistance level. The reversal off the key pivot point offered little before failing, giving contrarian breakouts an edge this time around as its bear trend technical overview continues to stall even if its short-term bear trend line is still intact, its price not that far off from its 50-day moving average. UK final GDP (Gross Domestic Product) figures were worse than expected for the quarter, its current account contracting. Up next we'll get final manufacturing PMIs (Purchasing Managers Index) expected to show slight expansion with a 50.2 reading, before the US dollar could be in for volatility on its PMIs, ADP's non-farm estimate, and the US Federal Reserve’s minutes. In the background, Brexit updates are always a wild card to be on the lookout for.
IG client* and CoT sentiment for GBP/USD
Lastly, in sentiment, retail long bias has dropped to just 56%, yesterday's moves a boon for averaged-in longs previously stuck on the price drop.
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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