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    GBP/USD overshoots expectations

    © Dukascopy Bank SA
    "With key USD pairs rapidly overtaking many forecasts once viewed as aggressive and hitting established trading targets, many market participants are unsurprisingly questioning whether moves have been excessive and could be prone to correction."
    - BNP Paribas (based on Reuters) 

    Pair's Outlook
    On Tuesday the Sterling fell twice as much as anticipated. The monthly S1 was insufficient to prevent the GBP/USD pair from declining deeper, and the currency pair ended the trading day at 1.5066. The technical studies on the daily time-frame remain mixed, while the UK Manufacturing Production is expected to improve; hence, the Pound is likely to appreciate against the Greenback. Additional positive factor could be proximity of the spot price to the key support at 1.4950, but the overall bias is nonetheless negative.

    Traders' Sentiment
    Market sentiment deteriorated, as only 51% of all positions are now long. Meanwhile, the gap between buy and sell orders narrowed, as 31% of orders are bullish and the remaining 69% are bearish.

    © Dukascopy Bank SA

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