GBP/USD: Outperforming last week following election results
GBP/USD: Outperforming last week following election results
GBP/USD Technical analysis, overview, strategies, and levels
Expectations going into last week’s fundamental UK parliamentary elections were for pivot points to break on both the daily and weekly levels, and on that front it certainly didn’t disappoint. Buy breakout strategies were clearly the conformist and ideal strategies following the release of the news, even if they retraced off recent fresh highs. The pound was the top performer amongst the FX majors last week, and by a healthy margin. However, following volatile and significant fundamental news and this week’s overview may show ongoing signs of that volatility, with the BoE (Bank of England) set to announce its monetary policy on Thursday. With Brexit likeliest to get finalized at this stage, the focus will shift thereafter to other deals between the UK and the EU, as well as the UK economy with today’s preliminary manufacturing and services PMI (Purchasing Managers Index) figures that are still in contracting territory.
IG client and CoT sentiment for GBP/USD
In sentiment, retail bias has shifted but not against the move rather in favor of it, from a majority short 55% last week to a majority long 57%. Larger speculative traders according to the latest CoT (Commitment of Traders) report who have been on the wrong side of this move have reduced their majority short bias to 59% on a combination of an increase in long positions by 4,165 lots and a simultaneous reduction in pound short positions by 3,246 lots.
GBP/USD Chart with retail and institutional sentiment
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