© Dukascopy Bank SA
- FXDD (based on Reuters)
Pair's Outlook
The near-term technical indicators turned out to be correct, as the exchange rate, being unable to breach the monthly R1 after sliding from 1.68, pared some of the losses by moving in the direction of the weekly PP. If this resistance is surpassed, GBP/USD will have a good opportunity to re-test the up-trend line at 1.6829, which at the moment is strengthened by the monthly R2 level.
Traders' Sentiment
As the Sterling attempts to regain its previous positions, more and more bears are entering the market, expecting the current rally to prove to be short-lived. Right now 60% of open positions are short. As for the orders, 100 pips from the spot there is no difference between the amounts of buy (54%) and sell (46%) ones.
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