HomeContributorsTechnical AnalysisGBP/USD Stuck Between 1.2250 And 1.23

GBP/USD Stuck Between 1.2250 And 1.23

‘The old floor at $1.24 now becomes important resistance, though, before it, we suspect a recovery from the current stretched condition will be more limited.’ – BBH (based on FXStreet)

Pair’s Outlook

Some uncertainty in Yellen’s speech of Friday caused the British currency to erase all intraday losses and end the day with a 33-pip rally against the US Dollar. Now the Cable faces an important psychological support, namely the 1.2250 level, as a breach would likely lead to a drop to the 1.20 major level. Even though technical indicators are giving mixed signals in the daily timeframe, the possibility of a recovery is also doubtful, as the 1.23 mark acts as a tough resistance, which the GBP/USD could struggle to overcome today. Ultimately, the Sterling is expected to retest the bearish trend-line again, before a plunge towards 1.20 could become achievable once again.

Traders’ Sentiment

Today 61% of all open positions are long (previously 58%). At the same time, the number of purchase orders edged up from 48 to 59%.

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.

Featured Analysis

Learn Forex Trading