FTSE, GBP SentimentTalking Points:
GBP/USD Sentiment Analysis
Summary:Long-term bullish trend considered alongside daily and weekly surge in short positioning suggests a bullish trading bias according to the IG Client Sentiment report[4]
Cable has continued its long-term uptrend. The chart below shows how price action has traded within an ascending channel with regularity as higher highs and higher lows were established. Yesterday, after bouncing off of channel support[5], the market breached the 1.3700 level.
Previously we mentioned that a break above 1.3700 may interest bulls, bringing the 1.3800 level of resistance[6] into focus. However, it must be noted that the pair has struggled to reach the upper side of the ascending channel recently which may indicate a slow down in bullish momentum in the near term.
Read our latest GBP analysis[7] from Martin Essex[8]
Chart prepared by Richard Snow[10], IG
- Trader net positioning: 69% short (bullish according to contrarian analysis)
- Daily Changes in longs/shorts: -15.2%/+42.21%
- Weekly changes in longs/shorts: - 25.91%/+53.77%
Positioning remains short, in aggregate, despite long-term uptrend
GBP/JPY Sentiment Analysis
Summary: September high may present short-term resistance to the bull trend. Despite majority short positioning, recent mixed changes in client sentiment suggest a mixed trading environment according to the IG Client Sentiment report[11]
The recent break above trendline support buoyed bulls as a gradual move higher ensued. However the September swing high at 142.70 looks to be the next level of resistance and may prove difficult to breach.
The stochastic
