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"Although we continue to look for trend depreciation in GBPUSD, we think the USD may struggle to appreciate too much against major DM peers into year-end following last week's ECB."
- Barclays (based on PoundSterlingLive)
Pair's Outlook
The GBP/USD currency pair weakened on Friday, with intraday volatility reaching the 1.5080 level, but with trade closing at 1.5117. Today the Sterling is expected to extend its correction and continue edging lower, as technical indicators suggest in all timeframes. Immediate support is represented by the weekly PP, now located at 1.5058. Meanwhile, the ultimate low rests around 1.49, namely the lower border of the falling wedge, which should limit this week's losses and preserve the pattern. At the same time, the 20-day SMA is providing resistance around 1.5144, in case bulls take over.
Traders' Sentiment
Bulls now take up 59% of the market (previously 56%). The portion of buy orders, however, dropped 14 percentage points to 58%.
© Dukascopy Bank SA