Dukascopy - Analytics

    Dukascopy

    464.25 6.25/10
    83% of positive reviews
    Real

    GBP/USD stuck around 1.53

    © Dukascopy Bank SA
    "GBP/USD has sold off to and has eroded the 200 day ma at 1.5362 and the 1.5330 July low – currently we suspect that we will see some consolidation at the 50% retracement at 1.5249 as we are not convinced that the market is quite ready to sustain another leg lower at this stage."
    - Commerzbank (based on FXStreet)

    Pair's Outlook
    The Sterling fell to the lowest in in two months on Tuesday, as weak UK PMI data put pressure along with the plunging equity markets around the world. As a result, the support cluster around 1.5320 was pierced, with the trade closing at 1.53 major level. Even though the Cable remains supported by this psychological area, somewhat bolstered by the lower Bollinger band, risks of edging even lower still persist. However, today's poor US fundamentals could help the British Pound recover yesterday's losses, despite technical indicators remaining mixed.

    Traders' Sentiment
    Today 56% of all positions are long (previously 53%), whereas the portion of purchase orders returned to its Monday's level of 52%.

    © Dukascopy Bank SA

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