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    GBP/USD risks falling below 1.32

    © Dukascopy Bank SA
    "We believe the UK economy's well-documented fiscal and current account deficits, combined with the fact that GBP is not especially cheap, leave room for still more GBP weakness." 
    - Credit Suisse (based on PoundSterlingLive)


    Pair's Outlook 
    Friday ended with the Cable remaining relatively unchanged, suffering a small loss, but unable to fall below the post-referendum low of 1.3230. Technically, the GBP/USD currency pair should now undergo a correction, at least partially erasing previous week's losses, thus, piercing the immediate resistance in face of the weekly PP; however, this might not be the case, since aggregate technical indicators are now giving bearish signals. As a result, the 1.3230 level risks being breached, with focus then shifting to the weekly S1 at 1.3090, the second closest support. 

    Traders' Sentiment 
    Bulls barely keep outnumbering the bears, as 56% of all open positions are now long (previously 60%). At the same time, the portion of orders to purchase the British Pound increased from 57 to 65%.
    © Dukascopy Bank SA

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