GBP/USD prepares for a lift-off from 1.4230

Source: Dukascopy Bank SA
© Dukascopy Bank SA
"On a trade-weighted basis sterling did very well last year and given the concern over inflation and competitiveness, that strength was probably unwelcome."
- Societe Generale (based on Reuters)

Pair's Outlook

Yesterday, the Cable completed a pullback after it had breached the accelerated falling trend-line earlier this week. Accordingly, even though the indicators are bearish, there is a good possibility the currency pair will rebound from the new formidable demand area around 1.4230, consisting of the trend-line, 2010 low, and weekly pivot point. The target for the next several days is therefore at 1.44 dollars, where the monthly S2 merges with the weekly R1 and 20-day moving average.

Traders' Sentiment

Cheaper Sterling spurred buying, and the share of longs in the SWFX market increased from 61 to 65%. However, the percentage of buy commands declined, from 58 to 45%.

© Dukascopy Bank SA

Actual Topics

Subscribe to "Fundamental Analysis" feed

Subscribe
To learn more about Dukascopy Bank CFD / Forex trading platform, SWFX and other trading related information,
please call us or make callback request.
For further information regarding potential cooperation,
please call us or make callback request.
To learn more about Dukascopy Bank Binary Options / Forex trading platform, SWFX and other trading related information,
please call us or make callback request.
To learn more about Dukascopy Bank CFD / Forex trading platform, SWFX and other trading related information,
please call us or make callback request.
To learn more about Crypto Trading / CFD / Forex trading platform, SWFX and other trading related information,
please call us or make callback request.
To learn more about Business Introducer and other trading related information,
please call us or make callback request.
For further information regarding potential cooperation,
please call us or make callback request.