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    GBP/USD remains on the back foot

    © 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 
    Even though the GBP/USD currency pair somewhat managed to rebound on Monday, it was still stuck between the 1.3230 level and the weekly PP at 1.3312. Technical indicators are giving bearish signals today, suggesting that a decline is due, but a lot depends on BoE Governor's speech today, as his statement could prompt another Sterling sell-off or trigger a buying spree. In either case the Pound is expected to leave its trading range, but with the bearish development most likely prevailing. Due to the breach of the 1.3230 level, the next support will be the weekly S1, located at 1.3090.  

    Traders' Sentiment 
    There are significantly more traders having a positive outlook towards the Cable today, as 68% of all open positions are long (previously 56%). The share of buy orders, however, slid from 65 to 55%.
    © Dukascopy Bank SA

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