GBP/USD: Short-term bear trend line still holding
Tariff report and surge in greenback pushes the pair’s price to a lower finish.
GBP/USD Technical analysis, overview, strategies, and levels
Conformist sell breakout strategies had a chance to outperform following two days of price gains earlier in the week as GBP/USD's price broke and closed below its 100-day moving average, and crossed below its 50-day moving average this morning to keep its bearish technicals and bear trend line intact after stalling heavily. The increase in coronavirus cases certainly has dented risk appetite and in turn aided the US dollar, and a report that the US was considering targeting UK imports with tariffs didn't aid the pound. Most of its main indicators are still neutral, and combined with a trending ADX (Average Directional Movement Index). A dearth of significant UK data from now until the end of the week that'll include CBI's (Confederation of British Industry) sales survey and the BoE's (Bank of England) Quarterly Bulletin means the focus could be on US data and USD movement instead.
IG client* and CoT sentiment for GBP/USD
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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