Dukascopy - Analytics

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    GBP/USD focused on reaching three-week high

    © Dukascopy Bank SA
    "There's not that much direction for the market. There's a feel of dollar strength with commodity prices falling. There was some risk aversion overnight."
    - Nomura Securities (based on CNBC)

    Pair's Outlook
    On Wednesday, GBP/USD behaved in accordance with expectations, as the pair managed to rebound from the 20 and 55-day SMAs. As anticipated, the immediate resistance was breached and the 1.56 major level retaken. Moreover, the Sterling is likely to extend the gains, unless the fundamental data disappoints. Today the nearest resistance is located around the 1.57 psychological level, which is also bolstered by weekly R1 and Bollinger band, while technical studies are supporting the possibility of another rally today.

    Traders' Sentiment
    Bulls are barely outnumbering the bears, as only 51% of traders are long the Pound today. The share of purchase orders also plunged, from 55 to 48%.

    © Dukascopy Bank SA

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