© Dukascopy Bank SA
"Given the daily Hammer pattern formed yesterday after the market rejected the levels below 1.46 and the above mentioned signals from the weekly chart, I believe there is a good chance of the 1.46 support level seeing a base in Cable with further recovery on the table."
- RBS (based on FX Street)
Pair's Outlook
The Sterling surprised with its performance against the US Dollar, as the price surged more than 100 pips. The Cable dropped below 1.46 first, but did not stay beneath the round level for long. Ultimately, GBP/USD breached the barrier at 1.47, as the weekly PP was unable to stop Pound's appreciation. Today, as suggested by the technical studies, we expect a bearish correction, and there is a high chance of a sell-off back to 1.47. Additional support is represented by the Bollinger band at 1.4640.
Traders' Sentiment
Both net positions and net orders remain unchanged. Right now 42% of the traders retain a positive outlook towards the Sterling, while 54% of commands placed 100 pips from the spot "sell" ones.
© Dukascopy Bank SA