Wed, Mar 29, 2023 @ 06:54 GMT
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GBP/USD: Downside Risks Persist

‘There are still geopolitical concerns, such as the Syrian situation, in the background, and there are no fresh incentives or reasons to buy the dollar.’ – Sony Financial Holdings (based on Reuters)

Pair’s Outlook

The British currency was able to outperform the US Dollar on Monday, but with gains limited by the tough resistance cluster around 1.2425. This cluster could prevent the Cable from recovering further, with the exchange rate once again slipped under the 1.24 mark, paving its way towards the support area just above 1.23, represented by the weekly S1 and the lower Bollinger band. However, technical indicators are unable to confirm the possibility of the bearish outcome today, thus, there is a chance the Sterling could post gains, but the second supply area, namely the weekly R1 at 1.25, is to remain out of reach.

Traders’ Sentiment

There are 57% of traders being long the British Pound today, compared to 61% yesterday. At the same time, the portion of orders to sell the Sterling inched higher, namely from 53 to 56%.

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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