GBP/USD: Crashes into 1980s lows
Traders both large and small feel the squeeze as US dollar outperforms.
GBP/USD Technical analysis, overview, strategies, and levels
It was another volatile session for GBP/USD's price, this time the pound plunging to lows unseen since the 1980s, with both the pound the worst performer in the FX market against the remaining FX majors and simultaneously the US dollar topping the charts. That did well to aid conformist breakout strategies in line with its current volatile technical overview. Commodity and high-beta currencies were the underperformers against the sought after greenback. All its main technical indicators are flashing red, though with underlying fundamental shifts that are occurring globally has meant that pivot points are far less likely to hold, making contrarian strategies clear underperformers as of late waiting for the unsettled market to settle on a range.
IG client* and CoT sentiment for GBP/USD
The recent plummet has only acted to increase the squeeze on both retail and institutional traders who are both holding heavy to extreme long bias, the former's 78% extreme long bias yesterday now at 77%.
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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