GBP/USD breaches an up-trend

Source: Dukascopy Bank SA
© Dukascopy Bank SA
"The pound is stabilizing after heavy selling last week. A lot of the bad news is already in the price but the weakening trend remains in place."
- Bank of Tokyo-Mitsubishi UFJ Ltd. (based on Bloomberg)

Pair's Outlook
GBP/USD breaches an up-trend, which has a beginning in the last months of 2008. Seems that the pair has settled beneath it - lower than a 1.5802 level. The closest support levels lie at 1.5624, the weekly S1, and slightly lower, in the 1.5590/68 area, where the lower Bollinger band and the monthly S1 are located. Also, the RSI gets very close to an oversold zone, as the index has a value of 33 in a daily graph.

Traders' Sentiment
Market players have slightly reduced their bullish sentiments, as 55% have a long position and 45% a short. Waiting orders market implies minor bullish advantage, as 52% are long and 48% are short.

© Dukascopy Bank SA

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