USD is the safe haven currency. Even thought the stimulus bill is going to be negative for the strength of the USD, there will still be investors flocking into the USD because of what is happening in the stock market. COT non-commercials are bullish on the USD, adding in longs over the course of the previous week.
GBP is weak across the board. Good rally up on the GBP against the USD during the previous week though, accompanied by the closing of a substantial amount of longs over the cause of the previous week, bringing USDGBP lower.
So the overall picture for the non-commercial hedge funds and banks is that they are getting rid of their GBP longs, bringing GBP net positions lower, and opening up longs on the USD.
What you see on the chart will not be our exact entry, but we will enter if price-action gives us a valid entry. A possible further retracement to around the 23,6 fib is certainly possible. This will add to an even better risk to reward.
GBP is weak across the board. Good rally up on the GBP against the USD during the previous week though, accompanied by the closing of a substantial amount of longs over the cause of the previous week, bringing USDGBP lower.
So the overall picture for the non-commercial hedge funds and banks is that they are getting rid of their GBP longs, bringing GBP net positions lower, and opening up longs on the USD.
What you see on the chart will not be our exact entry, but we will enter if price-action gives us a valid entry. A possible further retracement to around the 23,6 fib is certainly possible. This will add to an even better risk to reward.