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Technical Analysis

GBP/USD Analysis: Recovers Yesterday's Losses

Typography

'The reversal appears to be purely a function of a recovering US Dollar which has been under pressure all week as the US Trump administration bats allegation after allegation of wrongdoings and incompetence.' – Joaquin Monfort (based on PoundSterlingLive)

Pair's outlook

The morning session started rather calmly for GBP/USD with no strong market movers pushing the pair to either side. The Pound closed Thursday's session in the red area, thus leaving upside potential for the pair to reach the upper channel boundary today. Up to now, the rate has been appreciating gradually, suggesting that bulls may prevail to lead the currency towards the weekly R1 or even the channel boundary at 1.2970 and 1.3000, respectively. GBP/USD changing to the downside is not very likely today, taking into account bullish indicators that favour the above scenario over the Pound pushing back down to the 20-day SMA.

Traders' sentiment

Traders have turned bearish on the pair, as 52% of open positions are short. However, 55% of pending orders are to buy the Pound.

About the Contributor
Dukascopy Swiss FX Group
Author: Dukascopy Swiss FX GroupWebsite: http://www.dukascopy.com/
This overview can be used only for informational purposes. Dukascopy SA is not responsible for any losses arising from any investment based on any recommendation, forecast or other information herein contained.
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