Dukascopy - Analytics

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GBP/USD encounters a large obstacle

© Dukascopy Bank SA
"Dollar demand [is] returning fueled by a gradual improvement in the outlook for the US economy. The data is slowly turning better and importantly the rhetoric from the Fed suggests continued confidence that the economic recovery remains on track."
- Bank of Tokyo Mitsubishi (based on WBP Online)

Pair's Outlook
Yesterday the Sterling suffered a rather heavy loss against the US Dollar. Nonetheless, the support cluster around 1.5190 was able to prevent the GBP/USD pair from falling deeper. Even though this cluster should turn the tide for the Cable, there is a high chance that it will be breached due to poor fundamental data today. The worst-case scenario is a slump to 1.5140, namely the Bollinger band, while a hike back to 1.5250 is also possible. Technical studies, however, a suggesting the Pound is to decline again.

Traders' Sentiment
First time in more than two months market sentiment shifted to the bullish side, as 53% of all positions are now long. The share of buy orders edged back up to the last week's level of 57%.

© Dukascopy Bank SA


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