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"While the undertone for GBP is positive, the current price action suggests that this pair is still caught in a broad consolidation range."
- UOB (based on FXStreet)
Pair's Outlook
The Sterling surprisingly recovered on Monday, due to the European stock market rebound triggering demand for riskier assets. As a result, the Cable completely erased last week's gains, also breaking out of the falling wedge pattern earlier than anticipated. The bullish momentum is now likely to prevail, leading the exchange rate closer towards the resistance line at 1.45. The closest area to limit the gains is represented by the weekly R1 at 1.4339, but we should not rule out the possibility of the fundamentals pushing the GBP/USD pair back towards 1.42, as technical indicators retain their bearish signals in all timeframes.
Traders' Sentiment
Bulls lost some numbers, as 57% of traders hold long positions today, compared to 65% on Monday. Meanwhile, the portion of orders to sell the Pound edged higher, namely from 55 to 64%.
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