Dukascopy - Analytics

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    GBP/USD erodes demand at 1.48

    © Dukascopy Bank SA
    "Sterling is going to weaken in the next month because of election risk. Our forecast for cable (dollar/sterling) is $1.42 and for euro/sterling to trade higher in the short term. It will recover after the election."
    - BNP Paribas (based on Reuters)

    Pair's Outlook
    The Cable failed at 1.49 and tumbled to a lower edge of its trading range. At the moment the currency pair is underpinned by the weekly S1 and monthly S2 at 1.4782/60. However, because of waning topicality of this support area (monthly pivots will be recalculated tomorrow), the bears have a solid chance of pushing the price lower, down to 1.47, which has already proven to be a tough level to breach.

    Traders' Sentiment
    The long/short ratio remains unchanged. Right now 46% of open positions are long and 54% are short. At the same time, the percentage of orders to purchase the Sterling surged from 40 up to 61%.

    © Dukascopy Bank SA

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