Note: This section contains information in English only."The pound is likely to keep slipping towards $1.2798 as the U.K. economy faces the risk of a downturn and amid the prospect of further easing by the BOE."
- Mizuho Securities (based on Reuters)
Pair's Outlook
[ANNOUNCE]The fundamentals turned in Sterling's favour on Tuesday and along with the strong support cluster around 1.2850 caused a substantial rally in the Cable.[/ANNOUNCE] Consequently, the Pound almost completely erased all previous week's losses, having closed just on top of the weekly R1. However, technical studies keep giving bearish signals, suggesting that a correction after such a surge is likely to take place. A decline then would cause the GBP/USD pair to fall back under 1.30. On the other hand, a lot depends on the FOMC Minutes today, where a dovish statement could spark more Pound-buying, with the ceiling seen as far as 1.3170, where the weekly R2 coincides with the monthly PP.
Traders' Sentiment
Bullish sentiment worsened over the day, as 58% of all open positions are now long. Meanwhile, the share of buy orders slid from 57 to 54%.
Wed, 17 Aug 2016 05:57:04 GMT
Source: Dukascopy Bank SA
- Mizuho Securities (based on Reuters)
Pair's Outlook
[ANNOUNCE]The fundamentals turned in Sterling's favour on Tuesday and along with the strong support cluster around 1.2850 caused a substantial rally in the Cable.[/ANNOUNCE] Consequently, the Pound almost completely erased all previous week's losses, having closed just on top of the weekly R1. However, technical studies keep giving bearish signals, suggesting that a correction after such a surge is likely to take place. A decline then would cause the GBP/USD pair to fall back under 1.30. On the other hand, a lot depends on the FOMC Minutes today, where a dovish statement could spark more Pound-buying, with the ceiling seen as far as 1.3170, where the weekly R2 coincides with the monthly PP.
Traders' Sentiment
Bullish sentiment worsened over the day, as 58% of all open positions are now long. Meanwhile, the share of buy orders slid from 57 to 54%.