Sterling was on defensive again. GBPUSD closed the week near the major post Brexit support 1.2970. The price looks very bearish but only a breach below the triple bottom will push the price even lower. Speculators added a massive 29K long positions while only increasing shorts by 4.7K.
This week, speculators reduced their longs by another 5.5K positions. This is after they covered 11K in the previous week
At the same time, they reduced their shorts by 16K. This is a large quantity. This is 5th consecutive week when shorts are being cut.
Overall speculators are 82K net short, this is down from the previous week (92K), meaning
Speculators are less bearish on Euro FX futures this week, compared to the week before.
The market remains bearish until major shift in short orders quantity
Cable has been performing very well over the last few weeks. The pair has been closing higher for three consecutive weeks and closed unchanged last week.
Speculators decreased their shorts by 3.3K for the first time in many weeks.
At the same time they reduced longs by 863 contracts only.
They are 90K net short, this is down from being 93 in the previous week.
Today speculators are less bearish in GBP futures than a week ago.
Cable at last broke out from the tight range and advanced sharply after an excellent PMI report. Its seems like the confidence in UK economy is slowly coming back. GBPUSD has been trading higher 3rd consecutive week. This week speculators added 3.7K new longs, the volume not seen in many weeks. At the same time they added smallest amount of shorts in weeks.
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