GBP/USD: Regaining its footing last week as positive technical bias continues to build
UK data disappointed, but likelihood of hung parliament drops.
GBP/USD Technical analysis, overview, strategies, and levels
Last week’s gains were primarily on the back of last Monday’s price surge where the likelihood of a hung parliament on this December’s elections looks less likely, and where polls over the weekend have reinforced that view. This was despite worse than expected data out of the UK last week with GDP (Gross Domestic Product), CPI (Consumer Price Index), and retail data all worse than expected. But although the pair’s price finished the week higher, it offered little beyond last week’s 1st Resistance level, as a lack of momentum fails to offer significant gains intraweek (and intraday). Nearly all the main technical indicators are flashing green on both weekly and daily, and needing little to shift to an initializing bull trend.
IG client and CoT sentiment for GBP/USD
As for sentiment, retail longs have been taking profit pushing majority long sentiment 6% lower since the start of last week’s 61% majority buy bias, while CoT (Commitment of Traders) sentiment has failed to budge from last week’s 63% reading as the drop in longs (by 636 lots) and shorts (by 1,538 lots) wasn’t enough to shift the percentage bias.
GBP/USD Chart with retail and institutional sentiment
Be sure to request IG’s Weekly & Daily Market Report when you open an account with IG Dubai and get access to the full information on the FX majors, commodities, indices, and Bitcoin prior to the European market open.
This information has been prepared by IG, a trading name of IG Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients.
CFDs are a leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your initial deposit, so please ensure that you fully understand the risks involved.
Start trading forex today
Find opportunity on the world’s most-traded – and most-volatile – financial market
- Trade spreads from just 0.6 points on EUR/USD
- Analyse with clear, fast charts
- Speculate wherever you are with our intuitive mobile apps
See an FX opportunity?
Try a risk-free trade in your demo account, and see whether you’re onto something.
- Log in to your demo
- Try a risk-free trade
- See whether your hunch pays off
See an FX opportunity?
Don’t miss your chance – upgrade to a live account to take advantage.
- Get spreads from just 0.6 points on popular pairs
- Analyse and deal seamlessly on fast, intuitive charts
- See and react to breaking news in-platform
See an FX opportunity?
Don’t miss your chance. Log in to take your position.
Live prices on most popular markets
- Forex
- Shares
- Indices
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.
