HomeContributorsTechnical AnalysisGBP/USD Struggles To Reclaim 1.25

GBP/USD Struggles To Reclaim 1.25

‘Sterling is stuck in a range. It’s very cheap on most measures, but then real yields are very low and the current account deficit is very big.’ – Societe Generale (based on PoundSterlingLive)

Pair’s Outlook

The Cable closed with a 40-pip loss on Friday, as mixed US fundamentals were unable to cause a breach in the tough demand cluster around 1.2450. Nevertheless, the GBP/USD pair slipped back under the 1.25 major level, now seeking its way to recover with the help of the same demand area. Technical indicators are in favour of the positive outcome, as they keep giving bullish signals in the daily timeframe. However, we should not rule out the possibility of the pair partially breaching the support cluster, as political factors keep pressuring the British Pound.

Traders’ Sentiment

There are 59% of traders holding long positions today (previously 60%). Meanwhile, the portion of orders to sell the Pound increased from 53 to 56%.

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.

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