GBP/USD: Enjoying improved risk appetite
Lack of UK data means Fed’s decision tomorrow and risk flows may be the source of action.
GBP/USD Technical analysis, overview, strategies, and levels
The pound may not have outperformed in the FX market against most of the majors, but with the greenback in decline it managed to cross and close above GBP/USD's 200-day moving average to tilt all its short-term main technical indicators on the daily chart into green territory and force a technical overview shift. The more long-term weekly overview is less bullish but conformist still volatile with a trending ADX (Average Directional Movement Index). A dearth of data out of the UK from now until Friday means USD action and risk-related appetite will likely continue to drive this pair's price in the absence of any Brexit-related news.
IG client* and CoT sentiment for GBP/USD
While retail sentiment here is also majority short as is the case with EUR/USD, it's in far more moderate majority sell territory rising a notch to 56% as more price gains entice more longs into closing out.
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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