GBP/USD: Technicals remain bearish ahead of another round of negotiations
CoT short bias rises to 62%, retail traders opposite majority long.
GBP/USD Technical analysis, overview, strategies, and levels
With the pound underperforming late last week to undo its earlier gains, the net result was relatively consolidatory moves befitting its current Weekly technical overview that's consolidatory but showing heavy negative technical bias, and with Friday's breach of its Daily 1st Support level aiding conformist sell strategies in line with its stalling bear trend technical overview on the daily report. There was little UK data to go on late last week, but the weekend trade talk and a potential round of tough negotiations this week could bring Brexit back into focus. As for today, we've got lending and money supply data, and a speech from the BoE's (Bank of England) Bailey.
IG client* and CoT sentiment for GBP/USD
In sentiment, retail bias is unchanged week-on-week with longs unwinding mid-week on the gains and reinitiating on the drop, and CoT (Commitment of Traders) speculators are little changed and still holding a majority short bias, with pound short positions rising by 2,794 lots and longs by only 276 lots.
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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