GBP/USD Analysis:Keeps falling deeper into the pit

Dukascopy Bank Team Dukascopy Bank SA

"The market just takes the most negative view - it assumes that because May is keeping her cards as close as possible to her chest, there is no plan for Brexit and that we're going to 'hard Brexit' out of the EU."

– BMO Capital Markets (based on Business Recorder)

Pair's Outlook
With newly arisen concerns about Brexit, the Pound experienced another leg down and closed trade below the immediate support level. Nevertheless, the second demand area limited the volatility and it could also be sufficient to trigger a recovery in the upcoming days. In the meantime, the Cable has some room for another decline of 50 pips, which is likely to be the case today. Technical studies, however, are unable to confirm this possibility. The immediate demand area, located around 1.21, is the only obstacle on the pair's path, preventing it from reaching the trend-line below 1.20.
Traders' sentiment
Traders appear to be buying the dips, as 71% of all open positions remain long (previously 69%). At the same time, the portion of sell orders dropped lower, namely from 61 to 57%.

Interested in GBPUSD technicals? Check out the key levels

1. R3 1.2297
2. R2 1.2285
3. R1 1.2272
PP 1.2261
1. S1 1.2248
2. S2 1.2236
3. S3 1.2223

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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