GBP/USD undergoes a correction

Source: Dukascopy Bank SA
© Dukascopy Bank SA
"The deadline to avoid a U.S. government default is approaching, and risk aversion is building."
- Ueda Harlow Ltd. (based on Bloomberg)


Pair's Outlook

As expected, the Sterling was unable to keep the accelerated pace of appreciation relative to the buck and declined. However, it fell through the support at 1.6102/1.6062, which was supposed to underpin the pair. Nevertheless, there is a plenty of levels that should prevent an extension of the losses, such as the rising trend-lines that cross at 1.5965/44.

Traders' Sentiment
Over the weekend the popularity of the British Pound has notably increased, leading to a significant change in the positioning of traders on GBP/USD. Respectively, the portion of open long positions grew from 27% up to 36%, but the bulls still remain in a distinct minority.
© Dukascopy Bank SA

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