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- Stephen Innes, senior trader at OANDA (based on The Business Times)
Pair's Outlook
The GBP/USD currency pair underwent the anticipated decline on Wednesday, but with the broadening rising wedge's support line remaining intact. The trend-line was confirmed, but is still under the risk of getting breached today, as a number of fundamental events could trigger Pound-selling. The trend-line is also weaker today, as it is now reinforced only by the 20-day SMA, rather than the weekly S1, the monthly and the 55-day SMA as yesterday. As a result, the Cable risks falling back under 1.25, despite technical indicators retaining bullish signals. On the other hand, yesterday's losses could be completely erased should the fundamental data turn in Sterling's favour.
Traders' Sentiment
Today 60% of all open positions are long (previously 59%), while the share of sell orders returned to its Monday's level of 60%.
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