© Dukascopy Bank SA
- BAML (based on PoundSterlingLive)
Pair's Outlook
Even though the British Pound managed to outperform the US Dollar on Thursday, the monthly S3 once again prevented the pair from edging higher. Consequently, the GBP/USD pair is now expected to make a U-turn and fall back at least towards the 1.21 level. The Bollinger band around 1.2072 represents immediate support, but the demand area around 1.1950 is much stronger, represented by last week's low and the weekly S1. On the other hand, technical indicators are giving mixed signals, creating a possibility for another leg up, with the main drivers being the US fundamentals today.
Traders' Sentiment
There are 63% of traders with a positive outlook towards the Sterling today, compared to 65% on Thursday. At the same time, the portion of sell orders inched down from 60 to 54%.
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