© Dukascopy Bank SA
- Jeremy Stretch, head of currency strategy at CIBC (based on Reuters)
Industry outlook
A correction continues after the previous month's rally with GBP/USD having slowed to 1.6182. With controversial data from Stochastic and Relative Strength Index, a significant selloff continues on the market. Last October's high of 1.6134 could be the first potential support level.
Traders' sentiment
A massive selloff of GBP/USD was caused by 71.09% of traders betting on the descent of GBP/USD. Only 28.81% of traders believe in pair's short-term recovery.
Long position opened
The first intraday support for the pair is around 1.6157/27, but the weekly outlook for the pair is slightly positive. The first target for bulls is the 1.6218 pivot point.
Short position opened
A downward breach of 1.6127 could lead to the test of 1.61 psychological level and a further slump to 1.6112.
© Dukascopy Bank SA