GBP/USD: bearish correction could occur

Note: This section contains information in English only.
Source: Dukascopy Bank SA

Positions Today Yesterday % Change
Longs 48% 45% 6.25%
Shorts 52% 55% -5.77%
Indicator 4H 1D 1W
MACD (12; 26; 9) Sell Buy Buy
RSI (14) Neutral Neutral Sell
Stochastic (5; 3; 3) Sell Sell Sell
Alligator (13; 8; 5) Sell Neutral Buy
SAR (0.02; 0.2) Sell Sell Buy
Aggregate ⇓ ⇒ ⇒

[ANNOUNCE] The Sterling managed to advance 85 pips against the US Dollar during the first past on Monday.[/ANNOUNCE] Further upside momentum was disrupted by the combined resistance of the weekly and monthly PPs circa 1.3860. 

The inability of bears to take advantage of this situation resulted in a slight period of consolidation between 1.3860 and 1.3830. Given that the northern barrier is likewise guarded by the 200-hour SMA, bulls are unlikely to gather enough momentum for a breakout. Thus, that the pair could edge lower during the following hours until the 55– and 100-hour SMAs limit a further decline below 1.38. 

Meanwhile, the medium-term pattern suggests that the Sterling is likely to appreciate this week; thus, the 1.3860 should eventually be breached to allow for a surge up to 1.3950.

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