Dukascopy - Analytics

    Dukascopy

    485.50 6.00/10
    83% of positive reviews
    Real

    GBP/USD in limbo before UK Public Sector Net Borrowing

    © Dukascopy Bank SA
    "In terms of the trajectory of fed funds, we continue to see two more rate hikes in the first half of 2016. We then expect the Fed to remain on hold in the second half of 2016 to ascertain the effects of the cumulative 75 basis-point tightening on the economy and the financial markets."
    - Deutsche Bank (based on WBP Online)

    Pair's Outlook
    The GBP/USD reached as high as the 200-day SMA on Thursday, but lost some of the gains and closed under 1.53. Today the Cable is stuck in tight range between the 20 and 55-day SMAs and might maintain trade within this area today due to lack of market movers. A correction is still the most probable outcome, with a possibility of the immediate support failing to hold the losses. Technical studies are supporting this scenario, but one fundamental event could provide the Sterling with sufficient strength to pierce the nearest resistance levels and even retest the 200-day SMA at 1.5340.

    Traders' Sentiment
    Bearish traders' sentiment returned to its Wednesday's level of 61%, whereas no changes in the buy and the sell order ratio occurred.

    © Dukascopy Bank SA

    To leave a comment you must or Join us


    By visiting our website and services, you agree to the conditions of use of cookies. Learn more
    I agree