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Our respondents are most successful in predicting the Cable's performance, as 35% of votes over the last week were correct. It seems that the pair is finally entering a bearish correction after a solid rally. The Cable is still trading in boundaries of the channel up pattern on a daily chart, while on a 4H chart the pair has already formed an opposite formation. Currently there is an extremely strong support area around 1.6929-00, represented by weekly S1 and major level as well as pattern's (Channel Up 1D) lower boundary. Keeping in mind an inflow of disappointing statistics from the U.K. last week, a lack of reports from Britain during this five trading days and potentially, a stronger Dollar, the depreciation can continue.
At the time of writing the GBP/USD pair was changing hands at 1.6952, approaching daily S3 at 1.6942. Traders believe the pair will hit 1.6776 on Friday, August 1, meaning they are betting on a sharp rally to the downside. Additionally, almost 67% of votes were bearish, while 69% of all opened positions are short. At the same time, pending orders and aggregate technical indicators do not give a clear ‘buy' or ‘sell' signal. "The couple has suffered a sharp fall this week after peaking at 1.7180, the session of the Fed next week could push the pair below," said independeceday32. While almost everything speaks in favour of pair's depreciation this week, a bullish scenario should not be excluded as well, with weekly pivot at 1.7014 and a major level of 1.70 being potential targets for long traders. Khalidamassi pointed out that "although GBP/USD closed below 1.7 and despite of existence of bearish tone in the last week but the pair still supported fundamentally and compensate its last losses soon."
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