Technical Analysis GBP/USD trades at major demand area
Technical Analysis GBP/USD for August 12, 2014
Pair’s Outlook
For the time being the monthly S1 level seems to be able to hold the bears. However, the near-term indicators are still pointing downwards, meaning the dip may extend lower before the bulls have a chance to act and negate at least some of the recent losses. An upward correction is still a likely event, given that GBP/USD is currently facing the 200-day SMA and May low. Therefore 1.67 is not expected to be broken in the nearest future.
Traders’ Sentiment
The SWFX market participants stay largely bullish with respect to GBP/USD, as 60% of open positions are long. At the same time the percentage of buy orders 50 pips from spot has increased dramatically since the previous report—from 56 to 79%.
Source: Dukascopy
