GBP/USD: UK services PMI up next
European currencies underperformed yesterday, but the pound has recovered this morning.
GBP/USD Technical analysis, overview, strategies, and levels
European currencies were hit hardest amongst the FX majors yesterday, with the pound the second-worst performer and in turn retreating against the US dollar (which in turn had mixed results in the FX market). The result took GBP/USD's price briefly below its 50-day moving average before staging a recovery today (alongside high-beta assets). In economic data, we've got final services PMI (Purchasing Managers Index) for the UK out of Markit as well as the US via ISM later in the day, with expectations for big sub-50 contractions for both.
IG client* and CoT sentiment for GBP/USD
In sentiment, retail bias has remained close to the middle, and hence we've been seeing plenty of shifts, from a slight short 51% at the start of the week to a slight majority long 51% as of this 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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