Dukascopy - Analytics


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GBP/USD falls ahead of inflation data

© Dukascopy Bank SA
"The New York Federal Reserve data was not a positive one but employment and prices remain the key points towards a potential rate hike."
- Barclays (based on CNBC)

Pair's Outlook
The Cable tested the 1.5670 resistance area, which in turn pushed it back, forcing to pierce the immediate support. As a result, the Sterling dropped as low as 1.5581, namely the 20-day SMA, now located under a rather strong resistance cluster. The GBP/USD currency pair is expected to suffer more weakness, decline towards the support trend-line at 1.5540 and rebound afterwards. However, the trend-line risks being pierced if the UK inflation disappoints too much. Meanwhile, technical studies retain their mixed signals, unable to confirm either scenario.

Traders' Sentiment
Bears and bulls broke out of the equilibrium, as 51% of all positions are now long, while the share of buy orders slid from 58 to 53%.

© Dukascopy Bank SA

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