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"This observation along with the continued warning of Brexit risks should limit the upside in GBP and continue the rollercoaster ride for the currency."
- BK Asset Management (based on PoundSterlingLive)
Pair's Outlook
The British Pound once again managed to outperform the US Dollar, reaching the 1.47 major level yesterday, where the Bollinger band coincides with the 22-month down-trend. From the technical point of view, we should see the Cable make a U-turn and end the day in the red zone; however, daily technical indicators suggest that a possibility of a bullish outcome exists. In case of a bullish development gains should be limited by the 200-day SMA around 1.4778, whereas in case of the bearish outcome the main target will be the 1.46 psychological level, which contained yesterday's downside volatility.
Traders' Sentiment
Bearish market sentiment returned to its Monday's level of 54%, compared to 56% on Wednesday. At the same time, sell orders are now outnumbering the purchase ones by four percentage points.
© Dukascopy Bank SA