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"Risk aversion is on the rise and we are seeing broad-based U.S. dollar strength across the board and this may continue until the year end as recent economic data has also disappointed."
- Barclays (based on Reuters)
Pair's Outlook
After testing the 23.60% Fibo, the GBP/USD recovered from intraday losses due to disappointing US fundamentals. Although the pair remained relatively unchanged over the day, a correction is expected to take place today. The 23.60% Fibo, monthly S1 and weekly PP continue to form the support cluster around 1.5185, but the 1.52 psychological level might also contribute to holding the dips today. Meanwhile, technical studies are giving distinctly bearish signals, bolstering the possibility of the negative outcome.
Traders' Sentiment
The gap between the bulls and the bears narrowed, as 56% of all positions are short and the remaining 44% are long. At the same time, the share of sell orders added an extra 2% points, up to 61%.
© Dukascopy Bank SA