© Dukascopy Bank SA
The market has been bearish since mid-July, when the Pound was trading at $1.72. Now the price is standing at 1.6450, and, given that GBP/USD has formed a downward channel, the sell-off should extend even further South, potentially down to the 2014 low at 1.6250, as suggested by the four-hour and daily studies.
But in the short run we may see an upward correction, since the Sterling is facing a dense demand zone represented by the monthly R1 and two-month down-trend. As for the SWFX market participants, a majority (66%) believes the British Pound is going to appreciate relative to the U.S. Dollar.
© Dukascopy Bank SA