HomeContributorsTechnical AnalysisGBP/USD Keeps Riding The 100-Day SMA Wave

GBP/USD Keeps Riding The 100-Day SMA Wave

‘Sterling is stuck in a range. It’s very cheap on most measures, but then real yields are very low and the current account deficit is very big.’ – Societe Generale (based on PoundSterlingLive)

Pair’s Outlook

The British currency surprised with its performance on Tuesday, having fully recovered from its intraday low of 1.2350 and closed above the 1.25 mark. However, the Cable was still unable to climb over the immediate resistance, namely the weekly PP, which continues to provide resistance today. The Pound still remains on the back foot, risking to edge lower once more. The tough demand area around 1.2440 is expected to prevent the GBP/USD pair from sustaining sharper losses, mainly the 100-day SMA, as it has done so on several occasions.

Traders’ Sentiment

Bulls keep gaining numbers, as today 62% of traders are long the Pound and the remaining 38% are short. As for the pending orders, the share of sell ones edged lower from 57 to 54%.

Dukascopy Swiss FX Group
Dukascopy Swiss FX Grouphttp://www.dukascopy.com/
This overview can be used only for informational purposes. Dukascopy SA is not responsible for any losses arising from any investment based on any recommendation, forecast or other information herein contained.

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