Note: This section contains information in English only."We expect front loaded sterling/dollar weakness as the BoE adopts a range of easing measures at their August meeting and choose this pair as our trade of the week."
- Morgan Stanley (based on WBP Online)
Pair's Outlook
[ANNOUNCE]Demand, represented by the weekly PP, was sufficient to cause the Sterling to outperform the US Dollar, with the pair adding slightly more than 50 pips yesterday.[/ANNOUNCE] Positive UK fundamentals could prompt the Cable to move higher again, but technical indicators retain bearish signals, suggesting that a bearish development is more likely. In this case the weekly PP is to fail to keep the GBP/USD currency pair elevated, and a drop towards a one-week of 1.2970 will be possible. The second support, however, rests around 1.2830, formed by the weekly S1 and the one-year trend-line, a cross of which is doubtful.
Traders' Sentiment
Market sentiment slightly weakened again, as 57% of all open positions are now long, compared to 59% on Monday. At the same time, the number of orders to sell the Pound decreased from 65 to 62%.
Tue, 19 Jul 2016 07:09:06 GMT
Source: Dukascopy Bank SA
- Morgan Stanley (based on WBP Online)
Pair's Outlook
[ANNOUNCE]Demand, represented by the weekly PP, was sufficient to cause the Sterling to outperform the US Dollar, with the pair adding slightly more than 50 pips yesterday.[/ANNOUNCE] Positive UK fundamentals could prompt the Cable to move higher again, but technical indicators retain bearish signals, suggesting that a bearish development is more likely. In this case the weekly PP is to fail to keep the GBP/USD currency pair elevated, and a drop towards a one-week of 1.2970 will be possible. The second support, however, rests around 1.2830, formed by the weekly S1 and the one-year trend-line, a cross of which is doubtful.
Traders' Sentiment
Market sentiment slightly weakened again, as 57% of all open positions are now long, compared to 59% on Monday. At the same time, the number of orders to sell the Pound decreased from 65 to 62%.