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    GBP/USD to confirm the bearish trend

    © Dukascopy Bank SA
    "Markets are concerned about both continued tightening and a U.S. recession. They likely only need to worry about one. Were the Fed to remind the market that it remains data-dependent, it could temporarily alleviate some of the pressure on USD."
    - Morgan Stanley (based on Reuters)

    Pair's Outlook
    Last Friday the Cable retested the down-trend, but ended the day with a weaker rally of 47 pips, due to a disappointment in UK Retail Sales data. Any attempts to appreciate today should be limited by the down-trend around 1.4316, as there are no clear signs of a breakout to occur. Technical studies, in turn, continue to give bearish signals, suggesting the GBP/USD could turn around and suffer a loss today. As a result, a possibility of the Sterling piercing the immediate support in face of the weekly PP exists, with the pair stabilising closer to the 1.42 major level.

    Traders' Sentiment
    Market sentiment remains bullish, now at 66% (previously 67%). The share of buy orders, however, lost 14% points, falling down to 40%.

    © Dukascopy Bank SA

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