Dukascopy - Analytics


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    GBP/USD stuck in a tight range

    © Dukascopy Bank SA
    "I maintain my belief that both the U.S. economy and the dollar will reassert themselves in due course, similar to what happened last year."
    - SLJ Macro Partners (based on CNBC)

    Pair's Outlook
    Indeed, the Sterling suffered losses on Thursday, but was unable to erase Wednesday's gains. The 200-day SMA provided strong resistance for the second time this week, forcing the GBP/USD pair to bounce back. Moreover, the 1.53 level was tested, as anticipated, but the Pound still closed slightly higher, at 1.5352. Technical indicators are still suggesting a rally to occur today. The fundamental data is expected to strengthen both currencies, thus the Cable is likely to remain trade within the borders of 1.53 and 1.54 levels, which are also backed by weekly R1 and R2, respectively.

    Traders' Sentiment
    Today less traders are long the Sterling, only 40% (yesterday 44%). Meanwhile, the share of buy commands dropped from 47 to 33%.

    © Dukascopy Bank SA

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