Daily Forex Technicals |
Written by Dukascopy Swiss FX Group |
Nov 21 16 09:45 GMT
‘Most clients we talk to remain uniformly bearish on the longer-term pound outlook, partly because they expect the data to deteriorate from here.’ – Credit Agricole (based on Bloomberg)
Pair’s Outlook
As was anticipated, the breach of the support cluster around 1.2375 on Friday caused the British currency to reach the 1.23 major level, despite trade closing at 1.2349. The GBP/USD currency pair remains subject to weakness, even though technical indicators keep giving bullish signals in the daily timeframe. The monthly PP and the 20-day SMA now form immediate resistance, also being bolstered by the weekly pivot point, thus, making it more difficult for bulls to take over the market. On the other hand, the Sterling has been declining through all of the previous week, indicating that a trend reversal could be on the way. In the meantime, the 1.23 mark is seen as the bottom floor.
Traders’ Sentiment
Market sentiment keeps strengthening, as 71% of traders are now long the Pound, suggesting the currency might be overbought.
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Legal disclaimer and risk disclosure
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.
GBP/USD Remains On The Back Foot
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