Home / Analysis / GBP/USD takes a breath after Tuesday’s rally
GBP/USD takes a breath after Tuesday’s rally

GBP/USD takes a breath after Tuesday’s rally

"While the near-term landscape argues for some volatility, we think the chances for GBPUSD to squeeze meaningfully higher are limited." – TD Securities (based on PoundSterlingLive)

GBP/USD Outlook

On Tuesday the GBP/USD pair experienced the strongest rally in almost 20 years, amid UK May's comments and upbeat UK inflation data. Having surged 363 pips, the Cable fully realised the falling wedge pattern, as its upper trend-line was pierced yesterday.

Moreover, the 1.24 major level was retaken, with the 55-day SMA managing to provide sufficient resistance to limit the gains. The same SMA keeps providing resistance today, also being bolstered by the Bollinger band, the monthly PP and the weekly R2, which altogether are likely to cause the Pound to undergo a bearish correction.

The weekly R1 at 1.2324 is the closest support, which is expected to limit the possible losses.

gbpusd 18-jan-2017

Traders' Sentiment 

Today 72% of traders are long the Pound (previously 73%), whereas 52% of all pending orders are to sell the Sterling, up from 50%.

Provided by Dukascopy Bank

dukascopy eu swiss forex

Comments

comments

Any news, opinions, analyses, research, quotes, charts, or other information on this website is provided as general market commentary, and does not constitute investment advice. Forex Quebec will not accept liability for any loss or damage, including without limitation to, any loss of profit, which may arise directly or indirectly from use of or reliance on such information.

About Forex Quebec

Forex Quebec
Global Forex Trading Portal founded in 2010 by true traders for true traders! Our missions is to help traders arround the world to access usefull Informations, markets news, analysis, education articles, reviews on brokers and softwares, live trading, community and more...
Scroll To Top