GBP/USD: Fears of a hard Brexit test the pound’s recent gains
Bull trend technical overview needing little to shift, volatility breakout strategies outperform
GBP/USD Technical analysis, overview, strategies, and levels
The bullish technicals in GBP/USD were in built on last week's UK parliamentary election outcome, but since then those moves have been undone, and befitting a more volatile outlook enticing breakout strategies over fading ones. On the daily, while it’s still a stalling bull trend where its price is above all its main long-term moving averages, with a positive DMI (Directional Movement Index), and a trending ADX (Average Directional Index), breakout strategies have been more ideal given the increased volatility until things calm down. UK employment data was worse than expected, but its unemployment rate remained at 3.8%. CPI (Consumer Price Index) figures are up next today, and then it's the BoE (Bank of England) tomorrow.
IG client and CoT sentiment for GBP/USD
In sentiment, retail bias has risen 6% to a heavy long 65% as fresh shorts get enticed into closing out and longs initiate.
GBP/USD Chart with retail and institutional sentiment
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