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: Pound relatively outperforms as equities soar

UK PMIs show contraction that is heavier in services, CPI figures to be released today.

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

With equities staging somewhat of a comeback, the pound (whose movement has been more in line with high-beta currencies) was in for big gains which took GBP/USD’s price well past yesterday's 1st and 2nd Resistance levels. Here too, conformist breakout strategies in line with its volatile technical overview were clear outperformers, as although it has been tempting to label its overview a bear trend, the increased volatility and unknowns has made pivot point more likely to break than hold, regardless of the direction. In data, preliminary services PMI were a big contraction, even if manufacturing was better than expected. Up next we'll get CPI (Consumer Price Index) figures.

Learn more about forex and forex trading.

IG client* and CoT sentiment for GBP/USD

And while the gains have been of great benefit to both retail and institutional traders who hold a majority long bias, the former haven't been able to capitalize as much on the recent gains due to the bulk of those longs initiated at higher price levels.

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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This information has been prepared by IG, a trading name of IG Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients.
CFDs are a leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your initial deposit, so please ensure that you fully understand the risks involved.

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