GBP/USD: Pound underperforms, price back below 50-day MA
Retail long bias surges back up as conformist strategies get tested.
GBP/USD Technical analysis, overview, strategies, and levels
The pound was the worst performer yesterday amongst the FX majors, and hence GBP/USD's price registered a big plummet back below its 50-day moving average (and hence back below all its main long-term moving averages) that broke below yesterday's 1st Support level offering only a small reversal opportunity and overall aiding contrarian breakouts more. Most of its main technical indicators remain neutral with a non-trending ADX (Average Directional Movement Index), though a positive DMI (Directional Movement Index) cross occurred yesterday. Light data out of the UK both today and tomorrow means attention will likely be on significant US data released later today and its affect on the US dollar, as well as any risk-related items.
IG client* and CoT sentiment for GBP/USD
Retail long bias has risen significantly on yesterday's move, rising closer to heavy buy territory.
GBP/USD Chart with retail and institutional sentiment
The latest moves have been in favor of majority long retail traders, whose long bias has dropped to just 54% as of this morning. Larger speculative traders according to the latest CoT (Commitment of Traders) report remain majority short, with the increase in pound long positions by 4,285 lots outdone by a larger increase in short positions by 9,586 lots.
*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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