GBP/USD: Dual central bank decisions set to impact pair’s price
Fed tonight set to keep monetary policy unchanged, but the same can’t be said for the BoE.
GBP/USD Technical analysis, overview, strategies, and levels
Two central bank decisions over the next two days set to impact both aspects of this pair, starting with the US Federal Reserve announcement tonight impacting USD, and the BoE (Bank of England) tomorrow impacting GBP. European currencies were in retreat against the US dollar yesterday, with only the euro managing to recover. GBP/USD's price suffered a drop towards yesterday's 1st Support level but partially recovered. Technicals will mean far less in the face of the fundamental events not just today and tomorrow, but on Friday as well with the UK set to leave the EU.
IG client* and CoT sentiment for GBP/USD
Going into these events retail bias is majority long at 67% rising 4% on the day before, while CoT (Commitment of Traders) bias as per last Friday's report stands at a lower majority long 62%.
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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