Dukascopy - Analytics

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GBP/USD to bounce off 1.53

© Dukascopy Bank SA
"By not commentating on the currency and maintaining a tightening bias, the BoE stands out from the dovish central bank choir so far this year. This gives some support to the pound for now, though we are wary of political risk posing a drag in the medium term."
- Jefferies (based on Reuters) 


Pair's Outlook
As it turned out, support at 1.52, created by the weekly and monthly pivot points, was sufficient to push the price higher. The currency pair is now headed north, toward the major falling resistance line that is not supposed to let the rate exceed 1.53, at least in the medium term. Support at 1.52 is therefore at a substantial risk of being breached in the next few days, which in turn will imply a decline down to 1.50.

Trader's Sentiment
The SWFX market remains unable to reach a consensus regarding the Cable. At the moment both differences between the long (51%) and short (49%) positions and between the buy (50%) and sell (50%) orders are insignificant.
© Dukascopy Bank SA


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