GBP/USD Analysis: Attempts to reclaim 1.25

Dukascopy Bank Team Dukascopy Bank SA

“The recent negative undertone has eased with the sharp bounce and this pair has likely moved into a 1.2400/1.2580 consolidation range. In other words, the overall neutral phase that started earlier this month is still intact.”

– UOB Group (based on FXStreet)

Pair’s Outlook

Despite strong downside volatility, the GBP/USD pair managed to recover from its intraday low and even close trade in the green zone. The Cable now faces the 1.25 resistance, which is bolstered by the 20- day SMA and the weekly R1. However, a breach of this area does not ensure further bullish momentum is to follow; for that the Sterling is required to climb over the 1.2540 level, as that would slightly reassure the current three-week down-trend is to come to an end. A strong support area just above 1.24 is likely to help the British currency remain afloat, as it has been doing for a whole a month now.
Traders’ Sentiment

There are 58% of traders being long the Pound today, compared to 59% on Tuesday. At the same time, the share of sell orders returned to its Monday’s level of 55% (down from 58% previously).

Interested in GBPUSD technicals? Check out the key levels

1. R3 1.2483
2. R2 1.2463
3. R1 1.2447
PP 1.2427
1. S1 1.2411
2. S2 1.2391
3. S3 1.2375

Author

Dukascopy Bank Team

Dukascopy Bank SA

Dukascopy Bank stands as an innovative Swiss online banking institution, with its headquarters situated in Geneva, Switzerland.

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