© Dukascopy Bank SA
- BAML (based on Business Recorder)
Pair's Outlook
In spite of bullish signs the Cable started off with a rather sharp decline of 63 pips, having also put the two-month up-trend to the test yesterday. Technical studies keep suggesting the GBP/USD pair is to edge higher, this time with no room for a decline, as trade opened just in front of the up-trend. Moreover, this support line is also reinforced by the monthly PP and the weekly S1, making demand much stronger. The closest resistance, however, is unlikely to limit the gains if those occur, but downside risks are still present, due to the Cable located within the borders of a rising wedge pattern, which usually end with downside breakouts.
Traders' Sentiment
Market sentiment remains bullish, now at 62%, compared to 61% on Monday. The portion of sell orders inched up again, from 61 to 64%.
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