GBP/USD: Brexit talks set to resume today
Pound suffers big drop just as CoT short bias dropped.
GBP/USD Technical analysis, overview, strategies, and levels
It was a tough week for the pound, which dropped alongside other high-beta currencies, even if it didn't undo all of the gains made the week before. A risk-off in equities didn't help, but neither did economic data that showed the UK's GDP (Gross Domestic Product) contracting by a worse than expected 20.4% for April. GBP/USD's price stayed within its key weekly pivot points, but on the daily it crashed through its key support levels to undo its daily bull trend technical overview just as it was initializing. It also meant that its price crossed and finished below its 50-week moving average (MA) after briefly crossing its 100-week MA earlier in the week. Brexit talks are set to resume today, and there are plenty of fundamental items this week including employment tomorrow, CPI (Consumer Price Index) on Wednesday, the BoE (Bank of England) on Thursday, and retail data on Friday.
IG client* and CoT sentiment for GBP/USD
In sentiment, CoT (Commitment of Traders) speculators have reduced their heavy short bias to 65% on a rise in pound longs by 1,923 lots and a simultaneous drop in shorts by 10,073 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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