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GBP/USD struggles to preserve bullish momentum

© Dukascopy Bank SA
"Markets have nearly priced in a December rate increase, so chances are there won't be much more fresh buying incentives. That could spark profit taking."
- Gmo Corp. (based on Bloomberg)

Pair's Outlook
A correction occurred on Monday, causing the Cable to erase intraday losses and end the day with a 21-pip gain. The weekly pivot point remains the closest resistance today, but a rather high probability of the GBP/USD falling down again persists. The November low at 1.5026 keeps supporting the pair and could hold the losses. However, technical studies are giving bearish signals in all time frames, implying that a breach of the immediate support is possible. The second target to limit the losses is around 1.4980, represented by the Bollinger band and the weekly S1.

Traders' Sentiment
SWFX traders' sentiment remains rather strong, with 56% of all positions long, whereas 53% of all orders are still to sell the Sterling.

© Dukascopy Bank SA


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