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CFDs are complex financial instruments and come with a high risk of losing money rapidly due to leverage. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money. CFDs are complex financial instruments and come with a high risk of losing money rapidly due to leverage. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.

GBP/USD: Pound underperforms, government introduces stimulus

Retail bias back at extreme long levels.

GBP Source: Bloomberg

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

With the US dollar a clear outperformer as investors sought to liquidate into the greenback, GBP/USD's price broke through yesterday's 1st and 2nd Support levels, aiding conformist technical overview strategies in line with its volatile technical overview. UK employment data showed a larger than expected gain with wage growth mixed and its unemployment rate a notch higher, but data has been a smaller factor in the face of more fundamental forces, with the UK government unveiling a $400bn rescue package for businesses. From a technical standpoint, it's only a matter of time before prices manage to settle and entice contrarian reversals, but until then it has been consecutive volatile sessions.

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GBPUSD TA Source: IG charts

IG client* and CoT sentiment for GBP/USD

As for sentiment, retail bias has moved back up into extreme long territory standing now at 78%.

GBPUSD sentiment Source: IG charts

GBP/USD Chart with retail and institutional sentiment

GBPUSD chart Source: IG charts

*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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