© Dukascopy Bank SA
- Deutsche Bank AG (based on Bloomberg)
Pair's Outlook
GBP/USD is currently pulling back after the pair broke out of the bullish channel to the downside. The gains from the monthly pivot point at 1.3126 that acted as a strong support area yesterday should be limited by 1.3320, where supply is implied by the weekly PP, 23.6% retracement of the ‘Brexit' sell-off and the lower bound of the channel that originated in mid-August. Once the ceiling is confirmed, the price should revisit yesterday's low and then extend the decline towards 1.29, which is the location of the monthly S1 and August low.
Traders' Sentiment
The share of bears increased, but insufficiently to change the sentiment that remains neutral with 46% of positions long and 54% of positions short. Similarly, there is no notable difference between the buy (48%) and sell (52%) orders.
© Dukascopy Bank SA