Dukascopy - Analytics

    Dukascopy

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    GBP/USD fails to gain a foothold above 2013 low

    © Dukascopy Bank SA
    "Still, the recent pickup in wage inflation has been a key motivating factor behind the relatively hawkish stance of the BoE [which we expect will be reflected in the BoE minutes] and a slowdown in wage inflation could keep the GBP under pressure, particularly vs. the USD."
    - RBS (based on FXStreet)

    Pair's Outlook
    The Sterling performed almost according to the forecast, as it edged down on Tuesday. The Pound dropped below the 2013 low once more and even crossed support at 1.4760. GBP/USD settled at 1.4746, and another sell-off is expected today. The technical indicators are showing bearish signs on the daily time-frame, thus enhancing the probability of a downward outcome. The closest support level lies at 1.4636, represented by the lower Bollinger band, which might shift slightly lower during the day. 

    Traders' Sentiment
    The division between market participants remains perfectly neutral, as the long/short ratio is equal to one. The number of buy orders added 2% and now they account for 36% of all commands.

    © Dukascopy Bank SA

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