GBP/USD: Finance Minister unveils ₤30bn stimulus package

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GBP/USD Technical analysis, overview, strategies, and levels

With the pound outperforming against the greenback (and most of the FX majors), sell-on-reversal strategies offered less on yesterday's 1st Resistance level, the level getting hurt this morning as the US dollar generally weakens. There wasn't any data to go on out of the UK, the Finance Minister releasing a 'mini-budget' yesterday with stimulus worth ₤30bn. Four days of consecutive gains have given its technical overview more positive bias, and with its 200-day moving average not that far off at this stage and combined with a trending ADX (Average Directional Movement Index) may entice contrarian breakouts over conformist reversals should we get more follow through this time around.

GBP/USD: Finance Minister unveils ₤30bn stimulus package

 

IG client* and CoT sentiment for GBP/USD

In sentiment, the price gains have resulted in a shift in retail bias, from a previous slight majority long 52% to a now slight majority short 52%.

GBP/USD: Finance Minister unveils ₤30bn stimulus package

 

GBP/USD Chart with retail and institutional sentiment

GBP/USD: Finance Minister unveils ₤30bn stimulus package

 

https://www.ig.com/ae/news-and...

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