GBP/USD approaches critical point

Source: Dukascopy Bank SA

Positions Today Yesterday % Change
Longs 52% 54% -3.85%
Shorts 48% 46% 4.17%
Indicator 4H 1D 1W
MACD (12; 26; 9) Sell Sell Buy
RSI (14) Neutral Neutral Neutral
Stochastic (5; 3; 3) Sell Sell Sell
Alligator (13; 8; 5) Sell Sell Buy
SAR (0.02; 0.2) Sell Sell Buy
Aggregate

Monday did not favour the Pound, as the Cable once again fell under the monthly S1. However, support was found near 1.2725, namely the ascending channel's support line. The Sterling risks breaking this trend-line if supply at the monthly S1 is strong enough for such an occurrence. Technical indicators support the possibility of the negative outcome today, but the British currency could still receive a boost and outperform the Greenback. Consequently, the GBP/USD pair would then be able to finally stabilise above the tough resistance cluster, which rests circa 1.2770. In turn, a close above this zone is likely to allow the Cable to continue recovering until all post-parliamentary election losses are erased.

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