Community Forecasts for March 21 - 25: GBP/USD 1W Chart - Community Forecasts - Dukascopy Bank

Tue, 22 Mar 2016 13:11:07 GMT
Source: Dukascopy Bank
 
© Dukascopy Bank SA
In the beginning of the week, the pair showed some signs of hope, however, almost immediately started to perform a moderate decline reaching its lowest weekly point in the middle of Wednesday. Traders started to sell the pound heavily on Tuesday as the empty UK calendar turned the attention back toward the possibilities of Brexit, moreover, the cable was losing sharply after last week's rally, thus losing around 100 pips in a one day. The next day, Sterling continued its decrease, from nearly 1.44 point to just below 1.41 mark, being strongly affected by Osborne's 2016 budget speech combined with concerns over the possible Brexit. Nevertheless, in the middle of Thursday, the pair was sharply pushed higher by the US dollar's weaknesses since traders responded to the news of two rate hikes in 2016 according to the Fed dot plot. The cable leaped 1.70% to 1.4498 mark following the first attempt to conquer this resistance. Eventually pair closed the observed period on a quite successful note, reaching 1.446 on Friday.
Community members do not expect any surprises from the currency pair this week, as according to the Dukascopy survey the Sterling might end the week at 1.43, slightly changed from the last week's close price. The majority of those polled (62%) share a bearish outlook for the single currency. Jignesh is among those, who advocate bearish outlook, says that "The GBP/USD was quick to take out it's previous highs on the back of a dovish FED.  This confirms a bullish corrective structure on the daily and 4H charts, however, it may be a case of too far to fast and trader's looking to hunt for stops as the pair remains in a long term down trend.  Looking for a dip to daily support this week." In contrast, williamb expect that "The pound could recover because it is in oversold situation, while its long weakness should help the economy to grow stronger". 

© Dukascopy Bank SA

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