© Dukascopy Bank SA
- Credit Agricole (based on Business Recorder)
Pair's Outlook
On Friday the Sterling failed to reclaim the 1.25 major level, but also managed to remain above the 1.24 level, despite the initial hard slump. However, risks are still skewed to the downside, with the Cable facing a relatively strong resistance area around 1.2460, represented by the weekly PP and the Bollinger band. This supply area could trigger more weakness, causing the GBP/USD pair to pierce the 1.24 level. Meanwhile, the nearest support lies only at 1.2254, namely the monthly S3, but a drop that low is unlikely, as technical indicators retain mixed signals and no driver that could cause such a slump is present today.
Traders' Sentiment
Bullish traders' sentiment returned to previous Monday's level of 61%, while the share of sell orders edged up from 56 to 65%.
© Dukascopy Bank SA