GBP/USD Analysis: Begins marching forward

Dukascopy Bank Team Dukascopy Bank SA

“Uncertainty over the size of the negative long

-run productivity shock (stemming from a lack of economic openness) means that we are cautious about calling for GBP upside until all the potential ‘bad news’ is in the price.”

Pair’s Outlook
Yesterday the British currency one again successfully outperformed the US Dollar, having received a sufficient boost from a retest of the wedge’s support line. Today even if bears manage to take the upper hand, losses are unlikely to exceed 70 pips, as a drop lower would imply the breach of the two-month up-trend, which is still reinforced by the 20-day SMA, the weekly and the monthly PPs. Moreover, technical indicators are in favour of the positive outcome, and now with the 1.25 threshold broken, the Cable has the potential to climb higher. At the moment the 1.26 level is the target, while the weekly R1 and the Bollinger band circa 1.2580 form the only solid resistance on the way.
Traders’ sentiment
Bullish market sentiment remains unchanged at 60%, while the share of sell orders added 2% points, having risen to 58%.

Interested in GBPUSD technicals? Check out the key levels

1. R3 1.2654
2. R2 1.2589
3. R1 1.2549
PP 1.2484
1. S1 1.2444
2. S2 1.2379
3. S3 1.2339

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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