GBP/USD Reverses Off Confluent Support– Constructive Above 1.3226

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GBP/USD Daily Chart

GBP/USD Price Chart - Daily Timeframe

Technical Outlook: GBP/USD has continued to trade within a proportions of an descending pitchfork arrangement fluctuating off a yearly low with cost resilient off slope support final month. The successive pullback off a monthly open highs rebounded off near-term support during a 38.2% retracement of a Aug allege during 1.3320 with argent commanding a opening charts currently vs a USD.

The opinion stays constructive while above connection support during 1.3226 with a crack above 1.3543 indispensable to symbol delay of a broader uptrend. A dermatitis eyes successive insurgency objectives atthe yearly high tighten during 1.3589 and a 2017 high / Brexit opening during 1.3658/75.

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GBP/USD 240min Chart

GBP/USD Price Chart - 240min Timeframe

Notes: A closer demeanour during cost movement highlights a near-term descending channel formation with a prefect miscarry off a reduce together final night changeable a concentration behind towards a weekly open during 1.3436– a crack above this turn clears a approach for an allege targeting a high-day tighten during 1.3495 and a 1.618% prolongation during 1.3543.

Bottom line: I’ll preference shopping pullbacks in cost while above 1.3320 targeting a dermatitis of this near-term formation. A mangle reduce would leave prices exposed for a dump into 1.3283 a broader bullish cancellation during 1.3226. Keep in mind that U.S. Nov Non-Farm Payrolls (NFP) are on daub tomorrow with a recover expected to fuel increasing sensitivity in a dollar crosses.

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GBP/USD IG Client Sentiment

  • A outline of IG Client Sentimentshows traders are net-short GBPUSD- a ratio stands during -1.19 (45.6% of traders are long) – diseased bullishreading
  • Retail has remained net-short given Nov 21st, cost has changed 1.2% aloft given then
  • Long positions are 11.9% reduce than yesterday and 9.6% reduce from final week
  • Short positions are 9.1% reduce than yesterday and 21.1% reduce from final week
  • We typically take a contrarian perspective to throng sentiment, and a fact traders are net-short suggests GBPUSD prices might continue to rise. Positioning is some-more net-short than yesterday though reduction net-short from final week. The multiple of stream positioning and new changes gives us a serve churned GBPUSD trade disposition from a view standpoint.

See how shifts in GBP/USD sell positioning are impacting trend- Click here to learn some-more about sentiment!

Relevant Data Releases

GBP/USD Economic Calendar

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– Written by Michael Boutros, Currency Strategist with DailyFX

Follow Michael on Twitter @MBForex or hit him during mboutros@dailyfx.com

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