GBP/USD: Pound finishes higher against a weakened greenback
Retail longs unwind as its price crosses back above its 100-day MA.
GBP/USD Technical analysis, overview, strategies, and levels
With the US dollar in relative retreat yesterday, the pound was in for an easy finish higher only just beyond its 1st Resistance level. As seen on the daily chart however, it has been a few months of mostly consolidatory moves failing to break out of key mid-term pivot points, and its price is back above its 100-day moving average (MA) but where the bulk of its main technical indicators remain neutral and with a non-trending ADX (Average Directional Index) on the daily (the weekly's overview is more bullish and a trending ADX). In central bank news, US Federal Reserve rate cut likelihoods have been rising, the majority expecting one in April, while for the Bank of England the majority are expecting in August.
IG client* and CoT sentiment for GBP/USD
Retail longs have been waiting for a move higher to unwind, and with yesterday's opportunity the heavy long bias of 68% yesterday morning has now dropped 5% to 63%.
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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