Dukascopy - Analytics

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Real

GBP/USD trades flat prior to fundamental releases

© Dukascopy Bank SA
"This [US ECI data] strengthened the hand of dovish members of the FOMC who remain circumspect about when inflation will return to the Fed's target, particularly in light of the renewed weakness in commodity and oil prices."
- ANZ (based on WBP Online)

Pair's Outlook
The Cable experienced substantial volatility last Friday, which was limited by the support trend-line and the upper Bollinger band. The Sterling still managed to outperform the Greenback, as trade closed at 1.5615; thus, remaining rather far from the immediate resistance. Today's technical studies and the fundamental data suggest the GBP/USD pair is to remain unchanged. From below the Pound is supported by the weekly PP at 1.56, with a much stronger cluster located around 1.5570, while a surge towards 1.5670 is not out of the question, depending on the fundamental results.

Traders' Sentiment
Bulls and bears reached a perfect equilibrium today, while the number of buy orders increased from 56 to 61%.

© Dukascopy Bank SA


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