GBP/USD: Pound fails to outperform despite better than expected services PMI
Retail long bias nudges higher following better than expected US data.
GBP/USD Technical analysis, overview, strategies, and levels
UK services PMI (Purchasing Managers Index) not only managed to beat expectations for the month of January with a 53.9 reading, but came in at a number unseen in over a year. The results aided the pound in relatively outperforming earlier in the session, with GBP/USD's price making a move closer to yesterday’s 1st Resistance level before strong US data sent the pair’s price lower for a breach of its 1st Support level. A lack of impacting data on the economic calendar out of the UK means the focus here will also shift towards the USD aspect of this pair to see how the latest US Non-Farm Payroll (NFP) figure will fare and will likely infuse this (and other USD-related pairs) with more volatility as we approach tomorrow's fundamental event.
IG client* and CoT sentiment for GBP/USD
As it stands retail traders are holding a majority long bias of 69% having increased that bias a couple notches over yesterday’s heavy long 67%.
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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