Dukascopy - Analytics


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    GBP/USD keeps plunging

    © Dukascopy Bank SA
    "I think the dollar may keep strengthening as we wait for the first rate hike in the U.S. ... The trend is in place."
    - Barclays (based on CNBC) 

    Pair's Outlook
    As the UK Services PMI was worse than expected, and later through the day the US data showed strong figures, the Pound came under strong selling pressure, and the currency depreciated dramatically. GBP/USD easily breached the support cluster at 1.5325 and ignored the 55-day SMA at 1.5304, before ending the trading day at 1.5262. Despite the technical indicators giving bullish signs, the price is likely to preserve downward momentum amid the anticipated strong US data. A significant nearby support is set around 1.5100.

    Traders' Sentiment
    The share of long positions went down by nine percentage points to 60%. Meanwhile, the percentage of buy orders in the 100-pip range from the spot edged up, they now account for 54% of the market.

    © Dukascopy Bank SA

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