GBP/USD: Pound easily bests the greenback
Retail bias on the verge of shifting as longs unwind, technicals less relevant on fundamental day.
GBP/USD Technical analysis, overview, strategies, and levels
The pound was an outperformer yesterday, its price finishing above yesterday's 1st Resistance level and in turn its conformist sell strategies failing for the second consecutive session as its bear trend technical overview stalls heavily at these levels. A positive DMI (Directional Movement Index) cross also occurred, its price crossing and closing above its 100-day moving average. With the short-term bear trend line broken and risk appetite improving in the financial markets and especially considering expected heightened volatility today, the conversation might shift to breakout vs. reversal instead of buy vs. sell strategies. UK final manufacturing PMI (Purchasing Managers Index) out of Markit didn't veer far from expectations, and an absence of data for the remainder of the week means US data, risk appetite, and any potential Brexit updates may be the main drivers for this pair's price.
IG client* and CoT sentiment for GBP/USD
In sentiment, retail bias is at a slight long 51%, on the verge of shifting to majority short.
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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