BRITISH POUND,
GBPUSD
, TECHNICAL ANALYSIS, RETAIL TRADER POSITIONING – IGCS UPDATE
- British Pound set for worst month since August 2022?
- Retail traders’ bullish exposure relentlessly building
- Will the exchange rate bounce off near-term support?
At over -4 percent, the British Pound is on course for the worst month against the US Dollar since August 2022. In response, retail traders have been relentlessly building bullish exposure. This can be seen by looking at IG Client Sentiment (IGCS), which often functions as a contrarian indicator.
GBPUSD
Sentiment Outlook – Bearish
The IGCS gauge indicates that around 71% of retail traders are net-long GBPUSD, suggesting a bearish outlook for the medium term due to their upside bias. Upside bets have also increased by 3.29% compared to yesterday and by 12.79% compared to last week. Considering these overall positioning and recent changes, the outlook remains strongly bearish.
British Pound Daily Chart
GBPUSD
has been declining after a bearish Head & Shoulders formation. It broke below the 200-day MA and the May low of 1.2308. Immediate support is at 1.209, with a potential retest of the March low at 1.1804. Alternatively, a bounce from here would bring focus back to the 1.2308 level.
GBPUSD
, TECHNICAL ANALYSIS, RETAIL TRADER POSITIONING – IGCS UPDATE - British Pound set for worst month since August 2022?
- Retail traders’ bullish exposure relentlessly building
- Will the exchange rate bounce off near-term support?
At over -4 percent, the British Pound is on course for the worst month against the US Dollar since August 2022. In response, retail traders have been relentlessly building bullish exposure. This can be seen by looking at IG Client Sentiment (IGCS), which often functions as a contrarian indicator.
GBPUSD
Sentiment Outlook – Bearish The IGCS gauge indicates that around 71% of retail traders are net-long GBPUSD, suggesting a bearish outlook for the medium term due to their upside bias. Upside bets have also increased by 3.29% compared to yesterday and by 12.79% compared to last week. Considering these overall positioning and recent changes, the outlook remains strongly bearish.
British Pound Daily Chart
GBPUSD
has been declining after a bearish Head & Shoulders formation. It broke below the 200-day MA and the May low of 1.2308. Immediate support is at 1.209, with a potential retest of the March low at 1.1804. Alternatively, a bounce from here would bring focus back to the 1.2308 level.
