Sentiment Snapshot (UK): FTSE, GBP/USD, GBP/JPY

FTSE, GBP SentimentTalking Factors:

• GBP/USD: Sturdy long-term uptrend – 69%quick positioning
• GBP/JPY: Uptrend dealing with resistance – 67%quick positioning
• FTSE 100: Bull flag intersects trendline help – 70%lengthy positioning

GBP/USD Sentiment Evaluation

Abstract:Lengthy-term bullish pattern thought of alongside each day and weekly surge briefly positioning suggests a bullish buying and selling bias in line with the IG Client Sentiment report

Cable has continued its long-term uptrend. The chart beneath reveals how value motion has traded inside an ascending channel with regularity as greater highs and better lows had been established. Yesterday, after bouncing off of channel support, the market breached the 1.3700 stage.

Beforehand we talked about {that a} break above 1.3700 could curiosity bulls, bringing the 1.3800 stage of resistance into focus. Nevertheless, it have to be famous that the pair has struggled to succeed in the higher aspect of the ascending channel not too long ago which can point out a decelerate in bullish momentum within the close to time period.

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GBP/USD Day by day Chart

Chart ready by Richard Snow, IG

• Dealer internet positioning: 69% quick (bullish in line with contrarian evaluation)
• Day by day Modifications in longs/shorts: -15.2%/+42.21%
• Weekly modifications in longs/shorts: – 25.91%/+53.77%

Positioning stays quick, in combination, regardless of long-term uptrend

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GBP/JPY Sentiment Evaluation

Abstract: September excessive could current short-term resistance to the bull pattern. Regardless of majority quick positioning, current blended modifications in consumer sentiment recommend a blended buying and selling setting in line with the IG Client Sentiment report

The current break above trendline help buoyed bulls as a gradual transfer greater ensued. Nevertheless the September swing excessive at 142.70 appears to be the following stage of resistance and will show tough to breach.

The stochastic oscillator stays in overbought territory – though that is attainable for prolonged periods- and serves as a possible warning that the 142.70 stage could preserve bulls at bay for now.

GBP/JPY Day by day Chart

Chart ready by Richard Snow, IG

• Dealer internet positioning: 67% quick (bullish in line with contrarian evaluation)
• Day by day Modifications in longs/shorts: +20.48%/+18.6%
• Weekly modifications in longs/shorts: – 8.12%/+12.44%

Positioning stays quick, in combination, regardless of long-term uptrend

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FTSE Sentiment Evaluation

Abstract: Latest will increase in longs and general lengthy sentiment, regardless of the looks of a bull flag recommend a bearish buying and selling bias in line with the IG Client Sentiment report

It’s unsurprising to see the fairness index buying and selling decrease because the Pound Sterling strikes greater. That is as a result of existence of shares with sizeable earnings denominated in international forex. When Sterling appreciates this leads to fewer Kilos obtained for each unit of international forex.

Whereas the FTSE remains to be largely seen to be in a long-term uptrend, we now have witnessed a retracement within the type of a bull flag which is converging with the ascending trendline and an space of significance across the 6605 stage.

Sterling depreciation could present a catalyst for bullish continuation off these ranges nonetheless, this stays to be seen. Moreover the stochastic indicator has simply entered into oversold territory, one thing that FTSE bulls will certainly be monitoring.

FTSE 100 Day by day Chart

Chart ready by Richard Snow, IG

• Dealer internet positioning: 70% lengthy (bearish in line with contrarian evaluation)
• Day by day modifications in longs/shorts: +2.01%/ -8.26%
• Weekly modifications in longs/shorts: +7.60%/-13.99%

Positioning stays largely lengthy, in combination, consistent with the long-term uptrend

— Written by Richard Snow for DailyFX.com

Contact and comply with Richard on Twitter: @RichardSnowFX