GBP/USD records 100+ pip rally

Note: This section contains information in English only.
Source: Dukascopy Bank SA
© Dukascopy Bank SA
"From a technical level, we are recommending to investors that they short the pound at $1.69-$1.70 and take profits to a drop to $1.66."
- Societe Generale (based on Reuters)

Pair's Outlook

Despite the different directions implied by the various technical indicators, GBP/USD soared through the nearest resistances and reached the 2009 highs at 1.70. Since this level is likely to be a tough obstacle (reinforced by the monthly R1 and weekly R2), the upside could be limited. Consequently, there is a high chance of a sell-off emerging from here. However, we cannot rule out a rally to the upper boundary of the 14-month bullish channel at 1.7123.

Traders' Sentiment

Just as in EUR/USD, bearish views became even more popular due to a jump in the price. Right now as many as 73% of the SWFX market participants expect the Sterling to underperform relative to the U.S. Dollar (68% yesterday).
© Dukascopy Bank SA
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