© Dukascopy Bank SA
"Sterling can be one of the poorer performers in the earlier parts of the next year."
- Bank of New York Mellon (based on Bloomberg)
Pair's Outlook
GBP/USD failed to cover all the distance to the six-month down-trend at 1.5650 as initially expected. Instead the currency pair made a U-turn soon after hitting the weekly pivot point at 1.5567. As a result, the Cable is once again testing 1.55, the key medium-term level. Should the monthly S1 and this year's low fail to stay intact, the falling trend-line together with the weekly S2 at 1.54 is likely to be tested next.
Traders' Sentiment
The distribution between the longs and shorts is exactly the same as yesterday—58 and 42%, respectively. At the same time, the gap between the buy and sell orders contracted to an insignificant value of 6 pp, meaning there is no more real difference between them.
© Dukascopy Bank SA