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GBP/USD aims for six-week high

© Dukascopy Bank SA
"A strong US dollar is generally deflationary for the US economy so China causing further appreciation of the dollar through the devaluation of the yuan reduces the chance of inflation moving towards the Fed's target."
- CMC Markets (based on WBP Online)

Pair's Outlook
The GBP/USD currency pair surprised with its performance on Wednesday, as it rebounded after reaching a daily low of 1.5534. However, the immediate resistance cluster around 1.5510 managed to prevent the rally. On Thursday, the Cable is expected to surge again, as it is now supported by the 55-day SMA and the 1.56 psychological level. Consequently, last week's losses should be completely erased and a fresh six-week high could potentially be reached.

Traders' Sentiment
Bullish market sentiment returned to its Monday's level of 52%. At the same time, the number of orders to buy the Sterling added ten percentage points. The commands now take up 64% of the market.

© Dukascopy Bank SA

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