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"The pound has tumbled this year and, based on both fundamentals and valuations, we believe this depreciation is excessive."
- BlackRock (based on Bloomberg)
Pair's Outlook
The Cable managed to climb 31 pips higher yesterday, despite having dropped to the lowest in six years earlier that day. Even though the pair has been recovering for the past two days, risk of it slumping today and piercing the weekly S1 increased. As a result, the GBP/USD could even put the monthly S3 to the test, while bearish technical indicators are bolstering the possibility of the negative outcome. However, a positive surprise in fundamental data could also trigger a rally, with the Pound confirming the down-trend, which in turn is bolstered by the weekly PP and the monthly S2.
Traders' Sentiment
Bulls grew in numbers, as 67% of all open positions are now long. Meanwhile, the portion of buy orders added 22% points up to 54%.
© Dukascopy Bank SA