GBP/USD: Pound underperforms with high-beta currencies in retreat
A consolidatory session befitting its current daily consolidatory overview, focus shifts away from Brexit for the time being.
GBP/USD Technical analysis, overview, strategies, and levels
With the focus on risk-related flows and the US dollar, the plummet in equities hurt commodity and high-beta currencies hardest, with the pound a clear underperformer against the relatively safer greenback. Data out of the UK is low-impacting today and expect that to remain the case for the rest of the week, with any fresh comments regarding upcoming UK-EU talks regarding its trade deal to add some flavor to what has otherwise been a relatively consolidatory technical overview on the daily. Most of its main technical indicators remain neutral, and in the absence of any items on the fundamental front domestically or in relation to the EU, expect the US dollar and risk to likely play a larger factor.
IG client* and CoT sentiment for GBP/USD
The (relative) lack of movement in its price has translated into little change on the sentiment front, with retail bias still heavy long but dropping 2% since yesterday morning.
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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