Dukascopy - Analytics

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    GBP/USD about to test neckline

    © Dukascopy Bank SA
    "The polls seem towards the 'Remain' outcome - as does our hope and forecasts - so we believe something of that is priced in." - NORD/LB (based on Reuters) 

    Pair's Outlook
    The Cable took a pause from a strong two-day decline yesterday, stabilizing just above the 55-day SMA. Nevertheless, there is still some room for the sell-off to extend to the key support area at 1.4360/30, where the currency pair is in turn expected to turn around and begin to recover. However, if the price closes below 1.4360/30, this will mean that GBP/USD broke the neckline of the double top pattern and that the exchange rate will most likely descend down to the April's lows at 1.4150.

    Traders' Sentiment
    Despite Sterling's proximity to a major resistance area between 1.4750 and 1.48 dollars, the market is undecided with respect to the currency's future: 54% of traders are long and 46% are short. The same is with the orders, 49% of which are buy and 51% are sell.
    © Dukascopy Bank SA

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