GBP/USD: Volatility drops but still at risk of larger than expected daily ranges
Weekly overview remains bullish but stalling following a relatively consolidatory week
GBP/USD Technical analysis, overview, strategies, and levels
Following week after week of volatility with Brexit updates forcing GBP/USD’s price in one direction and then another, last week’s relatively range-bound and consolidatory movement came as a relative surprise. With most of its main technical indicators bullish – and its price crossing back above its 100-week moving average but failing to close above its 200-week MA – it has been stalling following its retreat from the 1.35 levels that shifted the overview on its daily technical overview but kept its weekly technical overview that of a bull trend. Keep in mind that much of this pair’s gains last week wasn’t down to strength in the pound rather weakness in the US dollar, as they both relatively underperformed compared to the remaining FX majors.
IG client and CoT sentiment for GBP/USD
In sentiment, retail bias has dropped 6% but remains in heavy long territories and awaiting further upside movement to unwind in profit.
GBP/USD Chart with retail and institutional sentiment
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