GBP/USD: Pound underperforms for the third consecutive session
Technical overview shifts as both weekly and daily show more volatile tendencies.
GBP/USD Technical analysis, overview, strategies, and levels
The pound has been in focus as of late given the wild swings experienced here with the move towards 1.35+ undone in three days of significant retracement that has tested its previous technical overview of an initializing bull trend that was initiated on fundamental news following last week's UK parliamentary elections. That means the recent moves we've been seeing have less to do with technicals and more based on the latest updates. In terms of data, UK CPI (Consumer Price Index) figures showed an unchanged 1.5% reading, ahead of today’s BoE (Bank of England) set to announce its monetary policy whereby no changes are expected.
IG client and CoT sentiment for GBP/USD
Going into today's event retail traders are holding a heavy long 67% bias, while larger speculative traders as per last Friday's CoT (Commitment of Traders) report are holding a moderate majority short 59%.
GBP/USD Chart with retail and institutional sentiment
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