GBP/USD: Trader bias remains majority long ahead of Thursday’s BoE
Weekly overview remains bullish ahead of fundamental items on the calendar.
GBP/USD Technical analysis, overview, strategies, and levels
Despite the retracement late last week, the pound was a relative outperformer for the week against the remaining FX majors, giving GBP/USD’s price a higher finish that took its price back above the last of its main long-term weekly moving averages (MA), the 200-week MA. And while last Friday’s UK PMI (Purchasing Managers Index) figures were better than expected, manufacturing continued to contract. The focus this week will be on this Thursday’s BoE (Bank of England) monetary policy announcement, where money markets are only just majority pricing in a rate cut. We can also expect Brexit headlines to resurface as Britain exits the EU at the end of this week/month.
IG client and CoT sentiment for GBP/USD
In sentiment, both retail and CoT (Commitment of Traders) are holding a majority long bias at similar levels, the latter reducing pound long positions by 4,560 lots and simultaneously increasing short positions by 2,050 lots.
GBP/USD Chart with retail and institutional sentiment
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