© Dukascopy Bank SA
"This is just some counter-trend correction in the dollar and is transitory."
- Janney Montgomery Scott (based on Reuters)
Pair's Outlook
Despite all the expectations, the Sterling managed to bounce back against the Greenback on Friday, amid potentially slower US interest rate increases than previously anticipated. GBP/USD almost succeeded in completely erasing Thursday's losses. However, the Dollar's weakness is most likely temporary, and the pressure on the Pound is to be renewed, as the technical indicators are still giving strong bearish signals. Immediate support now lies at the weekly PP, around 1.4918, although a deeper fall is possible.
Traders' Sentiment
The attitude of SWFX traders towards the British currency worsened, as 48% of all positions are long (50% on Friday). At the same time, the number of buy orders increased to 54%.
© Dukascopy Bank SA