Dukascopy - Analytics


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GBP/USD stuck between 1.50 and 1.52

© Dukascopy Bank SA
"Political uncertainty is set to remain high after the election."
- JP Morgan (based on CNBC)

Pair's Outlook
On Monday, the Sterling declined against the US Dollar, but not as much as anticipated. The Cable reached the 100-day SMA at 1.5086, which prevented the pair from falling deeper. Ultimately, the Pound stabilised at 1.5118. Technical indicators retain their bullish signals, suggesting a rebound today. At the moment the pair remains flat, stuck between the monthly PP and the 100-day SMA. The base case scenario is a surge towards 1.52, unless the US fundamentals outweigh the UK's, then we might actually see a dip towards 1.50.

Traders' Sentiment
For the third time market sentiment remains unchanged, with 40% traders being long the Sterling. The number of buy orders added six percentage points, up to 57%.

© Dukascopy Bank SA

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