Dukascopy - Analytics

    Dukascopy

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    GBP/USD intends to challenge the seven-month down-trend

    © Dukascopy Bank SA
    "We still think sterling is punching below its weight as the UK should remain a positive growth story this year, and the BoE is likely to be second only to the Fed in eventually tightening its policy stance."
    - BNP Paribas (based on Reuters)

    Pair's Outlook
    As it turned out, GBP/USD did not stop at the one-month down-trend at 1.5180 as expected but continued to advance north. Accordingly, for the time being the Sterling is likely to preserve its bullish momentum. However, the upside potential is limited, as there is a seven-month down-trend at 1.5280 that should be able to prevent further appreciation of the Pound and turn the currency around.

    Traders' Sentiment
    The advantage of bears over bulls is insignificant but growing. The difference increased from 4 to 6 percentage points. There are also slightly more orders to sell (54%) the Pound than to purchase (46%) the currency.

    © Dukascopy Bank SA

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