GBP/USD more volatile to the downside

Note: This section contains information in English only.
Source: Dukascopy Bank SA
© Dukascopy Bank SA
"U.K. companies are more likely to hike prices next year rather than absorb the impact of higher import costs caused by the Brexit-induced drop in the pound." 
– Bloomberg

Pair's Outlook 
The Sterling remained almost flat on Tuesday morning against the Greenback. However, the currency exchange rate was more volatile to the downside, as it was pressured lower by the upper trend line of a medium term descending channel pattern. The rate has been almost flat just below the 1.23 mark for the past few trading sessions. The reason for that is that the rate has support provided by the monthly S1 at 1.2251. However, the general down trend still persists, as strong as ever, as turmoil in the UK is not stopping.

Traders' Sentiment

Trader sentiment remains bullish, as 63% of open SWFX positions are long. Meanwhile, 57% of trader set up orders were to sell the Pound.
© Dukascopy Bank SA

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