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

FTSE, GBP SentimentTalking Factors:

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

GBP/USD Sentiment Evaluation

Abstract:Lengthy-term bullish development thought-about alongside day by day and weekly surge in brief positioning suggests a bullish buying and selling bias based on the IG Shopper Sentiment report

Cable has continued its long-term uptrend. The chart under reveals how worth motion has traded inside an ascending channel with regularity as increased highs and better lows have been established. Yesterday, after bouncing off of channel assist, the market breached the 1.3700 degree.

Beforehand we talked about {that a} break above 1.3700 could curiosity bulls, bringing the 1.3800 degree of resistance into focus. Nevertheless, it should be famous that the pair has struggled to achieve the higher facet of the ascending channel lately which can point out a decelerate in bullish momentum within the close to time period.

Learn our newest GBP evaluation from Martin Essex

GBP/USD Each day Chart

Chart ready by Richard Snow, IG

• Dealer web positioning: 69% brief (bullish based on contrarian evaluation)
• Each day Modifications in longs/shorts: -15.2%/+42.21%
• Weekly adjustments in longs/shorts: – 25.91%/+53.77%

Positioning stays brief, in mixture, regardless of long-term uptrend

GBP/JPY Sentiment Evaluation

Abstract: September excessive could current short-term resistance to the bull development. Regardless of majority brief positioning, latest blended adjustments in consumer sentiment counsel a blended buying and selling setting based on the IG Shopper Sentiment report

The latest break above trendline assist buoyed bulls as a gradual transfer increased ensued. Nevertheless the September swing excessive at 142.70 appears to be the subsequent degree of resistance and should 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 degree could hold bulls at bay for now.

GBP/JPY Each day Chart

Chart ready by Richard Snow, IG

• Dealer web positioning: 67% brief (bullish based on contrarian evaluation)
• Each day Modifications in longs/shorts: +20.48%/+18.6%
• Weekly adjustments in longs/shorts: – 8.12%/+12.44%

Positioning stays brief, in mixture, regardless of long-term uptrend

FTSE Sentiment Evaluation

Abstract: Current will increase in longs and total lengthy sentiment, regardless of the looks of a bull flag counsel a bearish buying and selling bias based on the IG Shopper Sentiment report

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

Whereas the FTSE continues to be largely seen to be in a long-term uptrend, we’ve got 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 degree.

Sterling depreciation could present a catalyst for bullish continuation off these ranges nevertheless, 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 Each day Chart

Chart ready by Richard Snow, IG

• Dealer web positioning: 70% lengthy (bearish based on contrarian evaluation)
• Each day adjustments in longs/shorts: +2.01%/ -8.26%
• Weekly adjustments in longs/shorts: +7.60%/-13.99%

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

— Written by Richard Snow for DailyFX.com

Contact and observe Richard on Twitter: @RichardSnowFX