GBPUSD Analysis: Attempts to regain the bullish momentum

Dukascopy Bank Team Dukascopy Bank SA

"I think the main driver of the market is the U.S. bond yield."

- Toshihiko Sakai, Mitsubishi UFJ Trust and Banking (based on Market Watch)

Pair's Outlook
The immediate support cluster, represented by the 23.60% Fibo and the weekly PP, managed to limit the losses on Wednesday, thus, keeping the Cable above the 1.26 mark. This time the mentioned support area is significantly weaker, as it is now formed only by the weekly pivot point. Despite this fact, technical studies are now suggesting the Pound is to outperform the US Dollar today. Consequently, the GBP/USD pair has the chance to erase yesterday's losses completely, but only if the 23.60% Fibo, which is now the nearest resistance, is overcome.
Traders' Sentiment
Traders' sentiment weakened once again, as 55% of all open positions are long today, compared to 59% on Wednesday. At the same time, the share of all sell orders returned to its previous Thursday's level of 58%.

Interested in GBP/USD technicals? Check out the key levels

1. R3 1.2799
2. R2 1.2742
3. R1 1.2684
PP 1.2627
1. S1 1.2570
2. S2 1.2513
3. S3 1.2455

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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