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Last week "showed further signs that Brexit concerns have eased in financial markets, and the pound once again outperformed all other G10 currencies."
- Danske Bank (based on Reuters)
Pair's Outlook
The overall risks for the Cable are heavily skewed to the downside, but the pair retains the potential to rally 150 pips during the next several days. GBP/USD has been recovering since late February, and now it is just a step away from a massive supply area between 1.4750 and 1.48 dollars, created by the 200-day moving average and 23-month falling resistance line. Still, the weekly technical indicators are mostly giving ‘buy' signals, and the up-trend standing at 1.45 remains intact, which implies a good possibility of a rebound from the weekly pivot point.
Traders' Sentiment
The sentiment in the SWFX market is currently neutral, as the percentage of long positions increased from 43 to 46%. Meanwhile, the number of buy orders now exceeds the number of sell ones by 18 pp.
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