GBP/USD: Weekly overview on the verge of shifting
Both CoT and retail long bias rises.
GBP/USD Technical analysis, overview, strategies, and levels
The Weekly bull trend overview continues to get tested as it stalls heavily at these levels and needing little to shift, though a conformist buy-on-reversal off of last week’s Weekly 1st Support did pan out with GBP/USD’s price recovering on Friday to avoid closing below its 100-week moving average (MA), having already crossed below its 200-week MA. Over the weekend, the French president put doubts over whether a trade deal can be reached before the end of this year, with formal talks between the UK and the EU starting next month. As it stands, money markets are majority pricing in a rate cut by the end of this year.
IG client* and CoT sentiment for GBP/USD
On the sentiment front, both retail and CoT (Commitment of Traders) speculators have upped their majority long bias, the former rising 9% to a heavy long 70% and the latter rising 3% to 63% on an increase in pound long positioning by 7,778 lots and a slight reduction in pound short positioning by 396 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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