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GBP/USD struggles to regain bullish momentum

© Dukascopy Bank SA
"Wage growth is falling... (and) the broad sterling trade-weighted index that the Bank tracks remains close to cycle highs even as GBP/USD heads lower. For these reasons, we remain comfortable with being short GBP/USD even if the BoE turns hawkish again."
- Deutsche Bank (based on Reuters)

Pair's Outlook
On Friday the GBP/USD currency pair pierced the 2015 low, falling to a fresh six-year low, amid strong US NFP figures. From the technical point of view the Cable should undergo a corrective rally today, as the bearish momentum persisted for two weeks straight; however, risks of edging lower persist, with technical studies retaining mixed signals. The monthly S1 at 1.4567 is the nearest resistance, whereas the Bollinger band is providing support around 1.45. Nevertheless, due to a breach of the key support on Friday, the decline might now extend all the way down to the 2010 low at 1.4230.

Traders' Sentiment
Today 65% of traders hold long positions (previously 64%), while the number of purchase orders dropped from 69 to 44%.

© Dukascopy Bank SA


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