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"We often hear that the bulk of US dollar strength is behind us. We find the subliminal message (no longer worth being long) misleading."
- Societe Generale (based on PoundSterlingLive)
Pair's Outlook
The US currency experienced an unexpectedly sharp sell-off on Wednesday, leading the Cable to a fresh two-week high. The two immediate resistances were broken, but the third one, namely the monthly PP and 23.60% Fibo, was able to cap the gains. The Sterling still has room to advance to the 1.53 major level, a break of which would imply the end of the falling wedge pattern, but the 23.60% Fibo is expected to cause a correction today. As a result, the Pound is likely to pierce through the closest support in face of the 20-day SMA and touch the psychological area of 1.51.
Traders' Sentiment
Bears are now in the majority (52%), while pending orders in the 100-pip range are equally divided between the buy and the sell ones.
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