GBP/USD: On shaky ground but still showing long-term positive technical bias
More fundamental data waits following last Thursday’s BoE decision.
GBP/USD Technical analysis, overview, strategies, and levels
Last Thursday’s focus was on the Bank of England’s (BoE) monetary policy decision, opting to leave rates on hold at 0.75% as expected but showing a surprise in votes as two members were in favor of a rate cut, even as elections are scheduled for next month. As with EUR/USD, it was a week of declines, and in this case six consecutive days of red that has certainly dented its long-term positive technical bias where its price is just above the 50-week moving average and thus (still) above all its main long-term daily moving averages. And with the BoE out of the way, it’ll still be a busy week for UK data with preliminary Gross Domestic Product (GDP) figures today, employment tomorrow, Consumer Price Index (CPI) the day after, and retail on Thursday.
IG client and CoT sentiment for GBP/USD
In terms of bias, retail sentiment has risen 9% since the start of last week as short positions dwindle on the price plummet, while the latest CoT (Commitment of Traders) report shows little change in majority short bias for the pound on a reduction in longs by 2,173 lots less than the reduction in short positions by 5,553 lots.
GBP/USD Chart with retail and institutional sentiment
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