GBP/USD: Majority long traders breathe a sigh of relief
Pound outperformed last week against a retreating greenback.
GBP/USD Technical analysis, overview, strategies, and levels
It was a significant week for the pound, whereby it was the outperformer against the remaining FX majors. That, combined with an underperforming US dollar sent GBP/USD's price surging back up and aiding last week's Weekly (and Daily) conformist breakout strategies by a healthy margin in line with its current volatile technical overview. In debt news, Fitch downgraded UK debt a notch to AA-, and expect further downgrades globally as deficits surge.
IG client* and CoT sentiment for GBP/USD
In sentiment, both retail and institutional traders breathed a sigh of relief on the moves, given they were both stuck holding big long positions prior to the squeeze down to the 1.14s, with extreme long retail bias of 77% last week dropping to 55%, and that of larger speculators according to the latest CoT (Commitment of Traders report) to 57% on a reduction in pound long positions by 10,041 lots outdoing a smaller reduction in short positions by 2,285 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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