© Dukascopy Bank SA
- GKFX (based on Business Recorder)
Pair's Outlook
The breakout from the rising wedge pattern occurred earlier than anticipated, being that the Cable edged lower on Tuesday. As a result, the monthly PP was put to the test, as was anticipated, but with trade closing at 1.2457, thus, allowing the cluster circa 1.2380 to retain its role of the key support area. Furthermore, due to the breach of the wedge, the GBP/USD pair risks falling deeper down. Moreover, technical studies are no longer giving bullish signals, creating a possibility for the bearish momentum to take over. On the other hand, there is a chance for a small correction take place, but with the weekly PP, the nearest resistance, remaining intact.
Traders' Sentiment
There are 64% of traders with a positive outlook towards the Sterling today, while 61% of all pending orders are to sell the British currency.
© Dukascopy Bank SA