Dukascopy - Analytics

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GBP/USD: slump inbound

© Dukascopy Bank SA
"The market was caught long, so the dollar quickly sold off."
- Global-info Co (based on CNBC) 

Pair's Outlook
The Pound misbehaved for another day, as it appreciated against the Greenback instead of edging lower. However, volatility did stretch out to the 55-day SMA at 1.5248, but the Cable still pushed higher, until the 20-day SMA stopped the rally. Although technical indicators, which proved to be unreliable in the past two days, keep giving bearish signs, we still expect the Sterling to suffer losses. The pair approached the strong resistance cluster at 1.54, where the tide is likely to turn. The GBP/USD should retreat at least to 1.53 today.

Traders' Sentiment
Although not as strong as yesterday, but market sentiment remains bullish at 58% (previously 59%). The share of buy orders remains unchanged at 64%.

© Dukascopy Bank SA


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