Dukascopy - Analytics

    Dukascopy

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    GBP/USD en route to erase last week's gains

    © Dukascopy Bank SA
    "Our forecasts for UK Q2 GDP have barely budged from 0.6% q/q since April and the release of Q1 GDP at 0.4%. Overall, this suggests the Q1 deceleration was indeed temporary and Q2 is back to trend—if not slightly above—what should be trend going forward."
    - TD Securities (based on FXStreet)

    Pair's Outlook
    The Cable failed to rise on Thursday, as the worse-than-expected UK fundamentals pushed the GBP/USD currency pair back down. The Sterling reached a daily low of 1.55, but stabilised at 1.5517, leaving the door open for more weakness. The 20 and 55-day SMAs are likely to prevent the pair from advancing today, thus, a decline towards 1.5477, namely the weekly S1 is expected. Meanwhile, technical indicators are unable to confirm the bearish outcome, as most of their signals are mixed.

    Traders' Sentiment
    Market sentiment slightly improved, as 53% of traders are now long the Pound (previously 51%). The buy and sell orders also edged higher, reaching a perfect equilibrium.

    © Dukascopy Bank SA

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