Dukascopy - Analytics


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GBP/USD: risks skewed to the downside

© Dukascopy Bank SA
"To give it more legs you do need to see some real evidence that the growth trajectory into the second quarter [in the US] has gained momentum."
- Barclays (based on CNBC)

Pair's Outlook
The British currency experienced weakness against the US Dollar for the second time in a row, as the pair dropped by 75 pips yesterday. Fortunately, the weekly PP was able to stop the decline and might provide enough support for a rebound today. A surge beyond 1.58 is unlikely, as that level has prevented substantial gains in the past; however, we also should not rule out the possibility of a further slump, as the Cable has begun undergoing what appears to be a correction, confirming the channel pattern.

Traders' Sentiment
The share of bulls remains unchanged, with 47% of all positions still being long. Nonetheless, three percentage points less commands are now set to purchase the Sterling, namely 53% of them.

© Dukascopy Bank SA

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