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"The (GBP/USD) pair maintains a strong bearish bias in the short term, with the 1 hour chart showing that the 20 SMA turned sharply lower above the current level, whilst the technical indicators continue to head lower, despite in oversold territory."
- Valeria Bednarik, Chief Analyst at FXStreet (based on FXStreet)
Pair's Outlook
In contradiction to the forecast the currency pair plunged. The losses were sharp, and only the 1.47 support was able to stop the Cable from falling deeper, as it had done several times in the past. The technical studies remain mixed on the daily timeframe, but the Sterling is likely to rebound today, unless yesterday's factors keep pressuring the pair down. Nearest support is still the 1.47 level, while the closest resistance lies at 1.4791, which is the weekly S1.
Traders' Sentiment
Once again the traders grew more confident in the Pound, as long positions increased by two percentage points to 45%. Meanwhile, the balance between the buy and sell orders was disturbed, as the share of the former retreated to its Wednesday's level of 47%.
© Dukascopy Bank SA