GBP/USD: CoT bias remains majority short
Short closures miss out on GBP/USD plummet following last Thursday’s BoE announcement.
GBP/USD Technical analysis, overview, strategies, and levels
For the pound, the focus late last week was on the Bank of England's (BoE) monetary policy announcement, where the central bank opted to keep its rate unchanged at a record low 0.1% and increase asset purchases by ₤100bn. What didn't come as expected was a slowing in the pace of purchases which sent bonds lower, and Friday's public debt figures that took it above the size of its economy for the first time since 1963 certainly not helping the mood. That meant GBP/USD's price lived up to expectations of volatility with an easy break beneath last week's key support levels and aiding conformist breakouts over contrarian reversals.
IG client* and CoT sentiment for GBP/USD
It has also meant a shift in retail bias from a previous majority short 53% at the start of last week to a now majority long 61%, exact opposite that of larger speculators according to the latest CoT (Commitment of Traders) report where pound short positions dropped by 7,565 lots and longs rose by 485 lots, taking the bias down to 61%.
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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