GBP/USD: Drops this morning as PM admitted
Majority long CoT and retail bias both drop to 54%.
GBP/USD Technical analysis, overview, strategies, and levels
While sell breakout strategies were tested on the daily for GBP/USD, its price failed to reach either end of last week's Weekly pivot points, as the currency pair that was previously most volatile was mostly rangebound for much of last week. The UK has been hard hit not just when it comes to coronavirus figures, but Friday's services PMI (Purchasing Managers Index) figure slightly below expectations and showing serious contractions, a test for an economy far more reliant on services than manufacturing. UK PM Johnson admitted to the hospital also didn't help the pound this morning.
IG client* and CoT sentiment for GBP/USD
In sentiment, there's been little change in retail bias which is still majority long, while the latest figures out of the CFTC via its CoT (Commitment of Traders) report shows larger speculative traders reducing their long bias to 54% on a larger reduction in pound long positions (by 9,385 lots) as opposed to a smaller reduction in shorts (by 3,494 lots).
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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