GBP/USD: BoE’s Carney sent the pound lower
Talk of ‘near-term stimulus’ shifts the focus away from Brexit to the struggling UK economy.
GBP/USD Technical analysis, overview, strategies, and levels
GBP/USD's price was relatively rangebound last week, with the focus shifting late last week to the BoE (Bank of England) Carney’s speech regarding weighing stimulus options, even as the House of Commons voted last week approving Brexit and sending it off to the House of Lords. The focus post-Brexit will shift towards trade negotiations and the UK economy. In terms of its technical overview, its weekly long-term bull trend line is still holding but where its price has been stalling, while on the daily its more consolidatory and awaiting fresh updates that could infuse more volatility into its price. Meanwhile, there will be economic data released today for the UK including GDP (Gross Domestic Product) figures, trade, and industrial production.
IG client and CoT sentiment for GBP/USD
In sentiment, retail bias is little changed since the start of last week, up a notch at a heavy long 64%, while larger speculative traders’ bias according to the latest CoT (Commitment of Traders) report shows that majority long bias rising 2% on an increase in pound long positions by 2,829 lots and a simultaneous reduction in short positions by 1,288 lots.
GBP/USD Chart with retail and institutional sentiment
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