GBPUSD Analysis: Struggles to remain at seven-month high

Dukascopy Bank Team Dukascopy Bank SA

"The USD side also looks supportive for further gains in cable, which reflects softer US data surprises, a longer timeline for fiscal reform and a shift in Fed pricing."

– TD Securities (based on FXStreet)

Pair's Outlook
As was anticipated, the GBP/USD currency pair underwent a correction on Wednesday, passing through only the immediate support, namely the weekly R3. According to technical studies, the Cable should continue to weaken today, with the upper Bollinger band and the weekly R3 now acting as a relatively strong resistance area. In case bears do take over the market, the Sterling would risk slipping under 1.27, despite the weekly R2 providing support around that area. Ultimately, a plunge towards 1.2620 is possible, as geopolitical factors keep weighing on the given pair. On the other hand, another leg up is unlikely to cause the 1.2850 mark to get pierced today.
Traders' Sentiment
Today both the market sentiment and all pending orders reached a perfect equilibrium.

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

1. R3 1.2929
2. R2 1.2895
3. R1 1.2837
PP 1.2804
1. S1 1.2746
2. S2 1.2712
3. S3 1.2654

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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