HomeContributorsTechnical AnalysisGBP/USD Remains On The Back Foot

GBP/USD Remains On The Back Foot

‘GBPUSD is sending mixed signals. The pair briefly dipped under its 50-day average near $1.2410 testing $1.2390 before bouncing back toward $1.2430. While this looks like a successful retest, RSI breaking under 50 suggests momentum turning downward.’ – CMC Markets (based on PoundSterlingLive)

Pair’s Outlook

The GBP/USD pair erased most of Friday’s losses yesterday, successfully climbing over the 1.2450 level, thus, breaching the immediate resistance area. Now the British currency is being supported by a strong demand area around the 1.24 major level, with the weekly PP just being a minor nuisance located at 1.2449. Technically, the Cable should remain above the 1.24 mark today and pave its way towards retaking the 1.25 handle. However, technical indicators are still unable to confirm the possibility of the positive outcome, leaving the door open for another leg down.

Traders’ Sentiment

Bullish traders’ sentiment remains unchanged at 59% for the third time in a row. At the same time, the share of sell orders inched slightly higher, namely from 55 to 58%.

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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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