Dukascopy - Analytics

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GBP/USD in tight range between 1.52 and 1.54

© Dukascopy Bank SA
"The BOE MPC (1100 GMT) is today with the pair expected to remain in limbo in the interim with 1.5400 seen capping with 1.5250 expected to offer initial support."
- OCBC Bank (based on FX Street)

Pair's Outlook
After a substantial gain on Tuesday, the Cable was pressured down on Wednesday. GBP/USD attempted to appreciate, but the 200-day SMA pushed it back down to 1.5250; however, the trade closed a lot higher at 1.5324. Despite a strong resistance cluster located near 1.54, we expect the Sterling to outperform the US Dollar today and, possibly, breach the 1.54 barrier. Nonetheless, there is risk of the Pound falling down to a support cluster around 1.5175, as technical indicators are still giving bearish signals in the daily timeframe.

Traders' Sentiment
Bulls keep gaining numbers, as 60% of traders now hold long positions (previously 59%). The portion of orders to acquire the British currency edged down from 77 to 64%.

© Dukascopy Bank SA


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