‘We are now in a phase where downside risks to the dollar has become predominant, with the drop in Treasury yields having gained further momentum this week due to perceived European political risks.’ – IG Securities (based on Reuters)
Yesterday the GBP/USD currency pair successfully climbed over the immediate resistance, namely the weekly PP, but just barely. Overall, the Cable appears to have entered a consolidation phase, with the tough demand cluster supporting the pair from below around 1.2440 and the 23.60% Fibo providing resistance at 1.2672. This means the Sterling has relatively a lot of room for further upside developments, even though the exchange rate keeps gravitating to the downside. Technical studies are unable to confirm any possible direction today, while risks are believed to be skewed to the upside, as the 20-day SMA recently provided a purchase signal.
Traders’ sentiment remains bullish at 62% today, while all pending orders became equally divided between the buy and the sell ones.