Dukascopy - Analytics


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    GBP/USD tightly driven by fundamental data

    © Dukascopy Bank SA
    "We think this move [GBP/USD rally] has further to run in the coming weeks and months as pricing for [BoE] rate hikes still appears too distant in our view."
    - RBC Capital Markets (based on CNBC)

    Pair's Outlook
    Cable advanced on Tuesday, amid UK's monetary policy statement. Moreover, the three nearest resistance levels were easily pierced, as the GBP/USD settled at1.5635. Nevertheless, the Sterling is still likely to decline against the US Dollar today, especially if the Fed hints on interest rate hikes. Furthermore, if the fundamentals support the Greenback, we could see the pair erase all yesterday's gains and even fall back to the 1.54 major level. Technical studies are showing bearish signs, bolstering the negative outcome.

    Traders' Sentiment
    Traders' sentiment edged closer to the equilibrium, as 52% of all positions are now long. The number of buy orders, on the other hand, inched up from 41 to 51%.

    © Dukascopy Bank SA

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