British Pound, GBP/USD, Technical Evaluation, Retail Dealer Positioning – IGCS Replace
- British Pound has been beneath strain by the US Greenback
- Retail merchants have just lately turned net-long GBP/USD
- This can be a signal that additional losses could also be in retailer forward
The British Pound has been beneath strain from the US Greenback because the center of July, with Sterling now round its lowest in a month. In response retail merchants have been growing GBP/USD net-long publicity. This may be seen by IG Consumer Sentiment (IGCS). IGCS tends to perform as a contrarian indicator. With that in thoughts, might additional losses be ins tore for the British Pound?
GBP/USD Sentiment Outlook – Bearish
The IGCS gauge reveals that about 54% of retail merchants are net-long. In reality, that is essentially the most since early June. For the reason that majority are actually biased larger, this means that costs might fall down the highway. That is as upside publicity elevated by 9.82% and a couple of.05% in comparison with yesterday and final week, respectively. With that in thoughts, the mix of present sentiment and up to date modifications produces a stronger bearish contrarian buying and selling bias.
British Pound Each day Chart
On the each day chart, GBP/USD is testing a breakout beneath a key long-term rising trendline from the tip of September. Additional draw back from right here might mark a significant turning level for Sterling. Instantly beneath is the June 29th low of 1.2592, which is essential assist. In the meantime, the 100-day Transferring Common (MA) can also be hovering round that value.
As such, this mix might show to be difficult to interrupt via. However, if that’s the case, the technical bias might shift to a stronger bearish standpoint. In any other case, a flip larger from right here locations the concentrate on fast resistance at 1.2848. That is an inflection level from early June. Extending features past that then locations the concentrate on the July excessive of 1.3141.
Chart Created in Buying and selling View
— Written by Daniel Dubrovsky, Senior Strategist for DailyFX.com
DailyFX gives foreign exchange information and technical evaluation on the tendencies that affect the worldwide forex markets.