GBP/USD: Retail bias shifts to the middle
Pound outperforms despite worries over the coronavirus.
GBP/USD Technical analysis, overview, strategies, and levels
FX movement amongst the majors was relatively sedate yesterday, but with the US dollar relatively underperforming and the pound a surprise outperformer despite rising coronavirus cases raising fears that the UK could be the epicenter of the virus in Europe, GBP/USD's price managed to finish higher. Any significant fundamental shifts or liquidity woes could easily cause a revisit and a shift to its previous volatile technical overview (which stands on the weekly), but the moves thus far have been more consolidatory with its price above all its main short-term moving averages but below all its main long-term moving averages, and where its RSI (Relative Strength Index) is in overbought territory.
IG client* and CoT sentiment for GBP/USD
As for retail sentiment, the price increase was enough to entice more longs into taking profit and pushing the bias from a previous majority long 58% to the middle.
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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