GBP/USD: String of UK data released today
Retail bias rises into heavy long territory as pound’s underperformance entices shorts into closing out.
GBP/USD Technical analysis, overview, strategies, and levels
The pound was an underperformer against the FX majors yesterday, taking GBP/USD's price breaking below yesterday's 1st Support earlier this morning before only slightly retracing. Negative technical bias has clearly been building just as its price rests near a short-term support level on the daily chart. Coronavirus data hasn't helped with the UK suffering from the worst death toll in Europe, and up next we get a string of economic data including preliminary GDP (Gross Domestic Product), trade, production, and construction data. Technicals hold less relevance and could mean pivot points could be at greater risk of breaking. And once we're through with UK data there will still be central bank speak out of the US that could infuse volatility on the USD aspect of this pair.
IG client* and CoT sentiment for GBP/USD
Meanwhile, retail sentiment has risen to a heavy long 67% as shorts get enticed into closing out and fresh longs initiate.
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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