GBP/USD: Retail longs take profit as short-term overview shifts to bullish
Increased volatility reduces likelihood that pivot points – in either direction – may fail to hold.
GBP/USD Technical analysis, overview, strategies, and levels
In terms of market movement, GBP/USD's price registered a large gain, enough to shift the bulk of its main technical indicators and its technical overview to a bull trend and more in line with its long-term stalling bull trend overview on the weekly overview. However, we’ve been here plenty of times before where volatility has pushed its price far past its main pivot pivots, and not necessarily in the upside direction. Economic data will be released today for the UK, with expectations for its manufacturing PMI (Purchasing Managers Index) to continue to show sub-50 and hence contraction in the sector. There will also be UK lending data to contend with tomorrow before attention shifts back to the US dollar and any affect from US data and central bank minutes.
IG client and CoT sentiment for GBP/USD
In sentiment, retail bias has dropped 10% on a combination of long profit-taking and short initiation, standing at a similar percentage to that of larger speculative traders according to the latest CoT (Commitment of Traders) report.
GBP/USD Chart with retail and institutional sentiment
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