GBP/USD: UK-EU trade talks show little progress
CoT bias remains majority short anticipating further price drops, retail bias jumps into heavy long territory.
GBP/USD Technical analysis, overview, strategies, and levels
The pound was an underperformer last week, and against the greenback GBP/USD's price broke through last week's Weekly 1st Support levels aiding contrarian breakouts over conformist reversals that got stopped out. There was little progress in UK-EU trade talks by the end of last week, and we've got a string of UK data this week including employment tomorrow, CPI the day after, preliminary PMIs (Purchasing Managers Index) the day after that, and retail data on Friday. That could make technicals less relevant, especially as we've got central bank testimony this week from the heads of both the US Federal Reserve and the Bank of England (BoE), the latter likely to address the option of using negative rates.
IG client* and CoT sentiment for GBP/USD
In sentiment, retail long bias has jumped to a heavy long 70%, while CoT (Commitment of Traders) speculators remain majority short at 59% with an increase in pound longs by 3,429 lots outdone by a larger increase in shorts by 5,112 lots.
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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