Pound continues to struggle amid Brexit uncertainties,
- With UK politicians going to and fro on Brexit, with both positive negative rumors and news steadily hitting the market, we would like to suggest to our readers to focus on technical study, which would be more reliable than fundamentals with so much noise around Brexit.
- We would also urge our readers to assert greater weight on market sentiment, and the current sentiment report suggests that the pound could decline further before any noteworthy buying takes place.
- Unless deadline extended, Brexit is set to happen in a disorderly fashion on 12th April.
Retail sentiment:
- The sentiment reports from IG Markets, which is a UK-based company providing trading in financial derivatives such as contracts for difference and financial spread betting, strongly suggest that the pound is likely to move lower.
- IG markets’ retail positions data provide a glimpse to retail traders’ positions, which are largely used a contrarian indicator since retail positioning moves in opposite direction to market movements.
- As of today, according to data from IG markets, 65 percent of retail positions are bullish on GBP/USD, while only 35 percent are on the short side, suggesting further downside possibility.
The pound is currently trading at 1.302 against the USD.
