GBP/USD: BoE set to keep policy unchanged
Pound underperforms, retail bias shifts yet again.
GBP/USD Technical analysis, overview, strategies, and levels
Negative technical bias has been forming in this pair's price as well, with GBP/USD crossing below the last of its main moving averages (MA) yesterday, the 50-day MA. The UK and US launched trade talks amidst what has been worsening economic data with construction PMI (Purchasing Managers’ Index) registering a far worse than expected sub-50 reading of just 8.2, as well as worsening coronavirus figures as the UK overtook Italy as Europe's highest number of official coronavirus deaths. But the focus for today is on the Bank of England's monetary policy announcement, making technicals far less relevant in the face of the fundamental event. Expectations are for monetary policy to remain on hold, but where investors and traders will be tuning into the central bank's projections for inflation and growth.
IG client* and CoT sentiment for GBP/USD
Going into today's event retail traders are holding a majority long bias, having shifted from a majority short 52% yesterday morning.
GBP/USD Chart with retail and institutional sentiment
*The percentage of IG client accounts with positions in this market that are currently long or short. Calculated to the nearest 1%, as of today morning 8am.
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