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    GBP/USD nosedives from 1.56

    © Dukascopy Bank SA
    "What we have in the Bank of England is a central bank that will not look to even think about raising interest rates until it has very good reasons to do so. I think sterling's going lower for 2015."
    - Neil Mellor, Bank of New York Mellon (based on Reuters)

    Pair's Outlook
    As the markets re-evaluated the possibility of the BoE tweaking the rates in 2015, the Sterling took a massive hit, plummeting more than 250 within a day. While this move confirmed the major resistance at 1.56, it also disproved the existence of the support at 1.5350, meaning there is rather a bearish channel emerging on the daily chart than a falling wedge. Consequently, we might expect a bullish correction to start around 1.52.

    Traders' Sentiment
    The bullish sentiment slightly intensified over the weekend, as the share of long positions went up from 58 to 60%. At the same time, the relative amount of sell orders placed 100 from the spot is more or less the same as last Friday—59%.

    © Dukascopy Bank SA

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