GBP/USD steps up from the 20-day SMA

Source: Dukascopy Bank SA
© Dukascopy Bank SA
"The economy is not growing, the pound will go on slipping and we will lose further credit ratings." 
- Robert Skidelsky, a member of the upper chamber of Parliament (based on Reuters)


Pair's Outlook

GBP/USD experienced a very volatile trading session yesterday, as the price set a 160 pips wide daily range, but closed almost unchanged. Such movement indicates a harsh fight between bulls and bears and, since the Cable failed to breach the 20-day SMA, bulls might take the lead now. The closest resistance is the Bollinger band and weekly R1 at 1.5227/43 area.

Traders' Sentiment
SWFX market participants added 1% to the buy side and enlarged it to 62%, indicating that they still anticipate a recovery of the Cable. Waiting orders segment provides marginally promising data, as bulls, 51%, have only a minor 2% advantage over bears, 49%.
© Dukascopy Bank SA

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