GBP/USD: UK economic data disappoints while latest election polls give Conservatives a bigger lead
Retail bias pushes further into majority long territory while CoT bias an opposite majority short.
GBP/USD Technical analysis, overview, strategies, and levels
The latest polls have shown a larger lead for Conservatives and reducing the likelihood of a hung UK parliament. However, should Brexit be out of the way by January (if not before) and it’ll still be a question of whether the economy can improve, as Friday’s preliminary PMI (Purchasing Managers Index) figures out of the UK were anything but good, with both manufacturing and services worse than expected, worse than previous, and contracting with sub-50 figures. On the daily the outlook for GBP/USD has shifted, while on the weekly positive technical bias that was built on the rise from the 1.22 to 1.30 is eroding. That said the price drop for last week was limiting, and more in line with its weekly consolidatory outlook that has kept prices range-bound.
IG client and CoT sentiment for GBP/USD
In sentiment, retail bias was at 55% majority long at the start of last week, and stands at a heavier 63% long bias at the start of this week, near opposite CoT (Commitment of Traders) bias at a majority short 64% with pound longs dropping by 1,143 lots and pound short positions rising by 2,627 lots.
GBP/USD Chart with retail and institutional sentiment
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