Dukascopy - Analytics


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    GBP/USD on the edge returning under 1.44

    © Dukascopy Bank SA
    "The Fed's dovish shift in forward expectations—and consensus is starting to capitulate on the strong dollar due to policy divergence' thesis."
    - Fundstrat Global Advisors (based on Market Watch)

    Pair's Outlook
    The British currency remained relatively unchanged against the US Dollar on Friday, but edged slightly lower over the weekend, unable to maintain trade above the 1.45 mark. The Cable is now under the risk of falling back under the 1.44 major level, with the nearest support located even lower—around 1.4335, represented by the weekly PP and the 20-day SMA. Meanwhile, the monthly R1 is weighing on the GBP/USD pair from above, just above today's opening price. Furthermore, the pair is also located in a descending channel, and as technical studies in the daily timeframe suggest, there is still room for a rally towards the channel's upper border near 1.47.

    Traders' Sentiment
    Bulls are only outnumbering the bears by two percentage points, whereas the share of sell orders decreased from 59 to 57%.

    © Dukascopy Bank SA

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