GBP/USD: 1.27 in focus

Note: This section contains information in English only.
Source: Dukascopy Bank SA
© Dukascopy Bank SA
"The Dollar fell prey to cautious profit-taking. Investors apparently are turning a bit more cautious on the Dollar ahead of the Fed policy decision." 
- KBC Markets (based on PoundSterlingLive) 


Pair's Outlook 
The British currency set off with a strong rally against the US Dollar this week, having not only retaken the 1.26 major level, but also having put the 1.27 mark to the test. Even though the 1.27 major level represents some psychological resistance, the GBP/USD pair has the potential to reach 1.2740, with the overall intraday high expected to be the 1.2771 level—where the 100-day SMA is located at. Technical indicators support the possibility of the positive outcome today, but a lot of impact is still likely to be from the fundamental events today, meaning that solid downside risks are present, in which case the pair could retreat back to 1.26. 

Traders' Sentiment 
Both long positions and sell orders take up 59% of the market today, compared to 58% and 60% on Monday, respectively.
© Dukascopy Bank SA

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