GBP/USD: Volatility plummets ahead of market-moving data
Retail bias on the verge of shifting to majority short.
GBP/USD Technical analysis, overview, strategies, and levels
Once again, there was little change between the pound and the greenback, as GBP/USD's price was rangebound and failed to reach either key pivot point, and in turn not offering a play for contrarian nor conformist traders. Of the economic data available, the UK's final manufacturing PMI (Purchasing Managers Index) reading was slightly above expectations at 47.8 and little changed from last month's contraction. Data will be low-impacting out of the UK today with attention more on US unemployment claims to estimate the damage Covid-19 has had on the US economy, and tomorrow's services PMIs for the UK (and the US) will be released, of significant importance given the reliance on the sector that has suffered more so than manufacturing.
IG client* and CoT sentiment for GBP/USD
In sentiment, while retail bias is still majority long, it's at a slight 51% and on the verge of shifting to majority short.
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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