Sat, Jun 10, 2023 @ 16:55 GMT
HomeContributorsTechnical AnalysisGBP/USD Keeps Approaching 1.23 Handle

GBP/USD Keeps Approaching 1.23 Handle

‘According to our long-term fair value model G10 VALFex, the USD already looks quite overvalued vs SEK, EUR, JPY and GBP and that should limit any future gains.’ – Credit Agricole (based on PoundSterlingLive)

Pair’s Outlook

In the wake of formal beginning of Brexit the GBP/USD pair began sliding down, this was seen by yesterday’s bearish development when the Pound lost more than 100 pips. Despite being supported by the weekly PP, the 55 and the 100-day SMAs, the Cable is likely to edge lower again. The 1.23 major level is expected to be the bottom floor for today’s trading, even though technical indicators are giving bullish signals in the daily timeframe. Ultimately, the given pair has been consolidating between 1.1950 and 1.27 since October 2016, and this trading range still remains intact, with the Sterling headed towards the lower half, namely below the 1.23 mark.

Traders’ Sentiment

Although not as strong as yesterday, but market sentiment remains bullish, now at 57%. The share of sell orders increased from 53 to 55%.

Dukascopy Swiss FX Group
Dukascopy Swiss FX Group
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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