HomeContributorsTechnical AnalysisGBP/USD Risks Falling Back Under 1.25

GBP/USD Risks Falling Back Under 1.25

‘While GBP managed to make a ‘fresh high’ of 1.2532, the up-move is lacking in momentum. That said, the undertone is generally positive and GBP could continue to edge higher towards 1.2550.’ – UOB Group (based on FXStreet)

Pair’s Outlook

Thursday was a relatively productive day for the British Pound, as it successfully stabilised above the 1.25 mark. However, downside risks are now higher, due to this major level being a tough psychological resistance, which tends to trigger U-turns lately, despite being crossed to the upside. As a result, the Cable could be seen undergoing a bearish correction today, with the monthly PP being a solid obstacle where support might be found. A much sharper decline is also possible, in which case the 55 and the 100-day SMAs are to limit the losses circa 1.24. Nevertheless, the GBP/USD is expected to continue recovering until the 1.27 handle is reached within the next month.

Traders’ Sentiment

Traders’ sentiment remains bullish, but now at 61% (previously 63%). The number of orders to sell the Sterling slid from 71 to 56%.

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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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