© Dukascopy Bank SA
"Our weekly cyclical model indicates a structural weakness in cable. It has rejected the $1.6180 level now three times since 17th October, which points to a bleak outlook at least for the coming week"
- SHARPE + SIGNA (based on Reuters)
Pair's Outlook
For the past 28 trading days the cable has been moving upwards at an accelerated pace, indicating that the bullish impetus is strong, although at the same time it is fragile and ready to shatter after a collision with one of the major resistance levels, which is currently standing at 1.6161/88. The last time the declining trend-line has been approached it resulted in a four figure dip over one and a half months, thereby making it a serious threat to the surge.
Traders' Sentiment
Over the weekend the sentiment has somewhat improved towards the British Pound, but insufficiently to make a notable difference. An overwhelming majority of traders are still short on GBP/USD—70%. On the other hand, the ratio between buy and sell orders is one-to-one.
© Dukascopy Bank SA