According to the latest data from CoT reports for the last trading week, hedgers increased the preponderance of buyers by a third, reaching a cash-equivalent preponderance of $6.779 billion over bears.
Based on these indicators, the impulse rise of the cable during Monday was a quite predictable event.
The 3% increase in the volume of cash investments in derivatives on the British pound, in turn, further confirms the likelihood of continued growth during the day and this trading week.
According to the latest data from the US Commodity Futures Trading Commission (CFTC), the locked positions of investors increased by less than 1%, which confirms the unidirectional nature of the movement within the option month.
GBP/USD, D1:
The nearest long-term support level on the daily time frame is the monthly balance of the market maker, placed at the price mark of 1.3848.
The main scenario for the development of events on the day is a successful test of the technical support level of 1.3848 and a subsequent increase with the nearest reference point - an increase in sell positions with a total volume of $169 million (1.4104).
The overall balance of market forces highlights the bullish mood of Smart Money: 62% of buyers and 38% of sellers.
GBP/USD, M30:
When conducting intraday trading, note the key resistance level - the limit seller (1.3977).
At the moment, the asset quotes are traded in the market maker's loss zone for medium-term option contracts. At the same time, the net loss of the seller of financial insurance on futures in monetary terms is over $210,000.
The main scenario for the development of events today is a successful test of the limit seller level (1.3977) and a subsequent decline in the direction of reducing the loss of the market maker with the target reference until the end of the currency day - the limit buyer (1.3898).
The strategic target of the downward correction before the close of trading on Friday, April 23, is the weekly balance (1.3848).
