GBP/USD: Underperforming but still showing positive technical bias
String of UK data released this morning, CPI figures tomorrow.
GBP/USD Technical analysis, overview, strategies, and levels
Despite yesterday's retreat that broke through its short-term bull trend line, its DMI (Directional Movement Index) remains positive on the daily and combined with a trending ADX (Average Directional Movement Index), with the 50-day moving average (MA) on the verge of crossing the 100-day MA. There was little to go on yesterday in terms of economic data, but that changes today with GDP (Gross Domestic Product), trade, construction, and production figures set for release shortly.
IG client* and CoT sentiment for GBP/USD
Majority short retail bias has dropped but only slightly to 55%, not that far off from shifting to majority long should we witness a significant price drop that would entice shorts into getting out.
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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