Dukascopy - Analytics

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GBP/USD hopes to penetrate the 1.57 barrier

© Dukascopy Bank SA
"The latest economic data is showing improvement so how the Fed perceives them will be a key. We suspect the Fed will acknowledge the improvement, concluding the weakness in January-March was temporary."
- Barclays (based on CNBC)

Pair's Outlook
On Tuesday, Sterling outperformed US Dollar for the seventh day in a row. Resistance was met at 1.5644, namely the upper Bollinger band, which forced the Pound to stabilise at 1.5639. Today the Cable is likely to appreciate again, with a major resistance cluster located around 1.57 psychological level. However, we should not rule out the possibility of a slump if the fundamentals disappoint. The worst-case scenario might be a plunge to 1.5461, where weekly PP rests.

Traders' Sentiment
Although not as strong as yesterday, but SWFX market sentiment remains bullish at 54% (previously 55%). The number of buy orders also lost one percentage point, as the commands now take up 53% of the market.

© Dukascopy Bank SA


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