GBP/USD falters at 1.5582/50

Source: Dukascopy Bank SA
© Dukascopy Bank SA
"At the moment, the U.K. economy is surprising more downbeat expectations and allowing the pound to rally. The past month's advance against the dollar is a corrective rebound phase after a sharp decline in the first quarter."
- Bank of Tokyo-Mitsubishi UFJ Ltd. (based on Bloomberg)

Pair's Outlook
It appears that the Cable did not yet gain enough momentum to break out from the rising channel it has been trading within since the beginning of March. Accordingly, Sterling's price is declining and is supposedly going to reach 1.5412/10, mainly formed by the 20 and 100-day SMAs, or 1.5380/56, monthly pivot point, where it will meet the lower boundary of the corridor.

Traders' Sentiment
Only a third part of the market is taken up by the bulls, being that a majority (67%) of traders foresee a decline in Sterling's value viewing the recent bullish run as already exhausted. In the meantime, the numbers of buy and sell orders placed on the currency pair are perfectly equal.
© Dukascopy Bank SA

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