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"The move above the $1.6810 level provides the first signal that a bottom is being established."
- Morgan Stanley (based on Reuters)
Pair's Outlook
For now the up-trend support line, which was breached two weeks ago, is holding the bulls back, thereby implying a negative bias towards the Pound. Therefore GBP/USD is expected to leave the vicinity of 1.6813/1.6783 and re-test the 100-day SMA at 1.6731/1.6698, namely the 100-day SMA. However, a majority of the indicators are currently pointing upwards, suggesting we should not rule out a spike up to 1.70 just yet.
Traders' Sentiment
The bears continue crowding out the bulls, as the percentage of the former increased from 54% to 61% within the last five trading days. Concerning the orders 50 pips from the spot, the sell ones currently dominate with a 59% share.
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