GBP/USD Analysis: Risks erasing most of weekly gains
|“The broader risks to GBP continue to lie to the downside – at least until the tail-risk of a ‘messy divorce’ has been taken off the table.”
- ING (based on PoundSterlingLive)
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Pair’s Outlook
The Sterling experienced a strong boost from news that UK might retain access to the European market despite ‘Brexit’, allowing the 1.27 level to be reached on Thursday. However, strong US fundamentals also strengthened the American Dollar, causing the Cable to retrace more than 100 pips, with trade closing just under the 1.26 mark. Today technical studies insist the GBP/USD pair is to edge higher again, but substantial US NFP figures are still expected to trigger a decline, putting the support cluster around 1.2475 to the test. At the same time, mixed figures could help the British currency erase intraday losses, as it happened on Wednesday.
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Traders’ sentiment
Today 59% of traders are long the Pound, compared to 60% on Thursday. The number of sell orders inched up from 58 to 59%.
Interested in gbpusd technicals? Check out the key levels
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