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CFDs are complex financial instruments and come with a high risk of losing money rapidly due to leverage. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money. CFDs are complex financial instruments and come with a high risk of losing money rapidly due to leverage. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.

GBP/USD: Pound plummets in a volatile session

Conformist technical overview strategies outperform, retail long bias surges.

GBP Source: Bloomberg

GBP/USD Technical analysis, overview, strategies, and levels

With markets in for another session of volatility, GBP/USD's price made a move well past yesterday's daily support levels with the pound the second-worst performer amongst the FX majors. That has taken its price crossing below both its 50-day and 100-day moving averages. Significant data awaits, as the UK will release its GDP (Gross Domestic Product) figure for the month of January, as well as manufacturing, construction, and trade data. Its government will also unveil its budget. The technical overview remains volatile even if the bulk of its main technical indicators on the daily are neutral, and hence pivot point breaks have been a more regular occurrence.

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GBPUSD TA Source: IG charts

IG client* and CoT sentiment for GBP/USD

In sentiment, some retail shorts have been able to unwind, and combined with longs initiating has pushed majority long retail bias 8% higher to a heavy long 65%.

GBPUSD sentiment Source: IG charts

GBP/USD Chart with retail and institutional sentiment

GBPUSD chart Source: IG charts

*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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This information has been prepared by IG, a trading name of IG Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients.
CFDs are a leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your initial deposit, so please ensure that you fully understand the risks involved.

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