Community Forecasts for May 23-27: GBP/USD 1W Chart

Source: Dukascopy Bank SA
© Dukascopy Bank SA
Despite strongly negative expectations for the Cable during the previous trading week among Dukascopy Community members, the most traded pair with the Pound went considerably up in the middle of the observed period. Pair started the week in a rather negative manner, however; Better than expected UK retail sales the GBP/USD pair above the $1.46 mark, with further gains likely in the near future. According to the latest figures from the Office for National Statistics (ONS), UK retail sales for April picked up notably from -0.5% to 1.3%, while the yearly printsoared to 4.3% from 3.0% booked in March. In addition, the gauge excluding fuel rose from -0.7% to 1.5% month-on-month, and improved to 4.2% year-on-year. 

Compared to previous five days, this week Dukascopy traders became more negative on US currency, as more than 60% of all votes are set to sell the Pound. Inline with negative statement, the median prediction for May 31 almost crossed the 1.44 mark. The biggest part of forecasts, however, remains even below the 1.44 major level. Concerning traders' opinions, Jignesh supposes that "The British Pound was the top performer last week despite the bullish run in the USD. Nearing the EU Referendum, votes are coming in favor of a stay which has the markets repricing the GBPUSD pair. Volatility may increase in the week, but the pair stays firm, and with a weekly bullish engulfing candle to start the week, the downside should be protected."
© Dukascopy Bank SA

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