GBPUSD Analysis: U-turn in sight

Dukascopy Bank Team Dukascopy Bank SA

"If you get a poorer retail sales number and worry about what unemployment will do, you might see some of these gains reversed and take us back down toward $1.28, maybe even toward $1.27 in the shorter-term."

– Chris Beauchamp, IG (based on MarketWatch)

Pair's Outlook
For the third consecutive day this week the British Pound was able to outperform the US Dollar yesterday, approaching dangerously close to the 1.30 mark. The goal remains unchanged, as the Sterling is required to pierce the consolidation trend's upper border in order to continue posting gains. As a result, risks of the pair shifting polarity persist, which would trigger another spark of bearish momentum and would eventually lead to a drop under 1.29, with the consolidation trend's lower border then in focus. Technical indicators keep giving mixed signals, unable to confirm this outlook.
Traders' Sentiment
Once again market sentiment reached a perfect equilibrium, but the portion of orders to buy the Pound inched slightly higher in the last 24 hours, namely from 53 to 55%.

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

1. R3 1.3090
2. R2 1.3041
3. R1 1.3005
PP 1.2955
1. S1 1.2919
2. S2 1.2870
3. S3 1.2834

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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