GBP/USD: Pound plummets in a volatile session
Conformist technical overview strategies outperform, retail long bias surges.
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.
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%.
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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