GBP/USD struggles to preserve the ascending channel pattern

Source: Dukascopy Bank SA
© Dukascopy Bank SA
"We stay of the view that the pound will continue to trade within this year's trading range. While elevated short positioning should prevent the currency from depreciating more considerably ... uncertainty as when it comes to the possibility of a Brexit should keep demand for the currency low." 
- Credit Agricole (based on Reuters) 

Pair's Outlook 
With experiencing another decline on Thursday, the GBP/USD currency pair inched closer to the ascending channel's support line. Technically, we should still see a rebound, as the trend-line is reinforced by the 55-day SMA and managed to provide the Cable with sufficient bullish momentum to keep advancing since March. However, daily technical studies are now giving bearish signals, indicating that a breakout might be imminent.. On the other hand, the two-year down-trend has not yet been retested, thus, the immediate support might hold today and eventually cause the Sterling to rebound, leading it back towards the 1.47 major level. 

Traders' Sentiment 
There are 56% of traders holding long positions today (previously 52%), while the number of purchase orders increased from 32 to 57%.
© Dukascopy Bank SA

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