© Dukascopy Bank SA
"With our positioning analysis now signalling sterling positioning is at its shortest point since the May elections, we think risks are skewed to sterling upside."
- BNP Paribas (based on Reuters)
Pair's Outlook
GBP/USD continues to struggle to resume recovery. More concerns are added because of the technical indicators. While most of the weekly studies are still pointing to the upside, on the daily and monthly time-frames they are suggesting a sell-off. The Sterling is likely to extend the rally to 1.55 dollars, and a move past this milestone is improbable, considering the monthly PP and moving averages that lie overhead. The target will then be a significant support area at 1.5330 (July low and 200-day SMA).
Traders' Sentiment
The sentiment did not experience any changes. Just as on Friday, 52% of open positions are long and 48% are short. But at the same time the share of sell orders plunged from 68 to 48%.
© Dukascopy Bank SA