Hedge funds boosted their position in petroleum

05 May 2021, GBP/USD

Hedge funds boosted their position in petroleum

GBPUSD trading plan:

Hedge funds boosted their position in petroleum for the third week running. Purchases over the three most recent weeks have totalled 63 million barrels, according to position records published by ICE Futures Europe and the U.S. Commodity Futures Trading Commission. The buying is accelerating, albeit gradually, suggesting traders are growing more confident that global economic activity or petroleum consumption will not suffer a relapse despite new waves of coronavirus infections in some countries. OPEC+ output restraint despite a strong recovery in oil consumption continues to underpin bullish sentiment that has also been bolstered by slower increases in the number of rigs drilling for oil in the United States. This is a positive signal for the pound, as the British currency is correlated with BRENT.

Investment idea: buy 1.3884 and take profit 1.3950.

David Johnson
Analyst of «FreshForex» company
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