© Dukascopy Bank SA
- Morgan Stanley (based on WBP Online)
Pair's Outlook
Demand, represented by the weekly PP, was sufficient to cause the Sterling to outperform the US Dollar, with the pair adding slightly more than 50 pips yesterday. Positive UK fundamentals could prompt the Cable to move higher again, but technical indicators retain bearish signals, suggesting that a bearish development is more likely. In this case the weekly PP is to fail to keep the GBP/USD currency pair elevated, and a drop towards a one-week of 1.2970 will be possible. The second support, however, rests around 1.2830, formed by the weekly S1 and the one-year trend-line, a cross of which is doubtful.
Traders' Sentiment
Market sentiment slightly weakened again, as 57% of all open positions are now long, compared to 59% on Monday. At the same time, the number of orders to sell the Pound decreased from 65 to 62%.
© Dukascopy Bank SA