GBP/USD Analysis: Still unable to reclaim 1.24

Dukascopy Bank Team Dukascopy Bank SA

“Despite the doom and gloom hanging over sterling, it has held up well this year – if so traders are to be surprised with some sort of plan or minor victory from the UK government, we could in fact see GBP trading higher in a relief rally.”

– ThinkMarkets (based on Reuters)

Pair’s Outlook
On Monday, the GBP/USD currency pair experienced a small bearish correction, after having surged for three consecutive days last week. The situation mostly remains unchanged, with the exception of the immediate resistance area now being slightly stronger, as the 55-day SMA is now bolstering the 100-day one. However, technical studies are now giving bearish signals in the daily timeframe, suggesting that Cable could struggle to appreciate again. Ultimately, the Pound is required to stabilise above the 1.24 level in order to reach the nine-month down-trend. In case bears take over the market, the 1.23 mark is expected to hold, as it is reinforced by the weekly PP and the 20-day SMA.
Traders’ sentiment
Today 67% of traders holding long positions (previously 68%), whereas pending orders are still equally divided between buy and sell ones.

Interested in GBPUSD technicals? Check out the key levels

1. R3 1.2407
2. R2 1.2401
3. R1 1.2393
PP 1.2387
1. S1 1.2378
2. S2 1.2373
3. S3 1.2364

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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