Dukascopy - Analytics

    Dukascopy

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    GBP/USD to undergo a correction

    © Dukascopy Bank SA
    "The recent consolidation over the 1.4375/65 support region looks to be a classic "flag" type process and keeps us biased to the downside. We target a move back towards the 1.4150 channel support region, with intra-day resistance lying at 1.4465 and then 1.4525/30."
    - Lloyds Commercial Bank (based on PoundSterlingLive)
     
    Pair's Outlook
    A set of positive US fundamentals caused the British Pound to plunge against the US Dollar on Friday, with the 100-day SMA managing to limit the losses. The given SMA is also providing strong support today, where demand could be sufficient to cause a corrective rally. The Cable would then be facing a resistance cluster around 1.4420, represented by the weekly and the monthly PPs, but a surge back above the 1.44 major level will be hard to achieve due to lack of impetus today. Furthermore, technical indicators are giving mixed signals, implying that the bullish momentum could be short-lived and more weakness might soon follow.
     
    Traders' Sentiment
    There are 57% of traders being long the Sterling (previously 60%), while the share of sell orders keeps rising, now taking up 63% of the market.
     
    © Dukascopy Bank SA

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