GBP/USD: Slight retreat but positive technicals remain intact
Another PMI set for release today ahead of Thursday’s BoE.
GBP/USD Technical analysis, overview, strategies, and levels
Yesterday's UK construction PMI (Purchasing Managers Index) showed ongoing contraction at a slightly worse than expected rate, and services is up next expected to show an ongoing sub-50 contracting reading. However, in the context for this week, the slight retracement has done little for the overall technical bias on both the daily and weekly where it both remains positive heading into this Thursday’s fundamental event in the form of the Bank of England’s (BoE) monetary policy announcement. In UK politics, while politicians trade jabs ahead of next month’s elections, a new speaker has been elected.
| Current Technical Overview | Consolidation - Positive Bias |
| Technical Overview Conformist Strategies | Sell 1st Resistance After Reversal, Buy 1st Support At/Before Price |
| Technical Overview Contrarian Strategies | Buy 1st Resistance Upon Breakout From Below, Sell 1st Support Upon Breakout From Above |
| S/L for 2nd Resistance | 1.3070 |
| 2nd Resistance | 1.3034 |
| S/L for 1st Resistance | 1.2998 |
| 1st Resistance | 1.2961 |
| Relative Starting Point | 1.2889 |
| 1st Support | 1.2817 |
| S/L for 1st Support | 1.2780 |
| 2nd Support | 1.2744 |
| S/L for 2nd Support | 1.2708 |
IG client and CoT sentiment for GBP/USD
As for sentiment, little change in its price has translated into little shift in the bias, with slight long bias amongst retail traders rising a couple percent to 54% as it entices a few shorts into taking profit.
GBP/USD Chart with retail and institutional sentiment
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