Dukascopy - Analytics

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    GBP/USD consolidates below monthly R1

    © Dukascopy Bank SA
    "An abrupt and total interruption to incoming capital flows in response to a 'Brexit' could see [Sterling] decline by as much as 15-20 percent."
    - Goldman Sachs (based on Reuters)

    Pair's Outlook
    GBP/USD is currently retreating from the monthly R1, but the currency pair retains potential to go higher from here. Above 1.4680 dollars the Pound should target the 55-day SMA at 1.4740. If the latter resistance is breached as well, the rally will likely travel up to 1.50, the level where the six-month down-trend is reinforced by the 100-day SMA. Our long-term bias, however, remains bearish, and the negative outlook is strengthened by the weekly and monthly technical indicators mostly pointing south.

    Traders' Sentiment
    The sentiment is neutral, being that 51% of open positions are long and 49% are short. A similar situation is observed with the orders: 52% are to buy and 48% are to sell the British Pound.

    © Dukascopy Bank SA

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