GBP/USD sets eye on 1.27

Note: This section contains information in English only.
Source: Dukascopy Bank SA
© Dukascopy Bank SA
"Strategically, we remain bearish on GBP/USD and see risks of a move down towards 1.21 over the coming weeks - especially once markets reconnect with the idea of Trumpflation."  
– ING (based on PoundSterlingLive) 


Pair's Outlook 
The Sterling surprised with its performance on Wednesday, having successfully climbed over the 1.26 major level, thus, taking another significant step closer to the main target. Another positive development would allow the GBP/USD pair to reach this target, namely the resistance cluster around 1.2675, represented by the 23.60% Fibo, the monthly R1 and the weekly R2, now also bolstered by the upper Bollinger band. Technically, the Pound should encounter sufficient resistance here in order to reverse polarity, but according to technical indicators the Cable is to keep edging higher, meaning the given supply area could be pierced. 

Traders' Sentiment 
Once again bullish market sentiment weakened, having fallen from 62 to 61%. The share of sell orders returned to its Tuesday's level of 54%.
© Dukascopy Bank SA

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