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"Investors have been scurrying to push back their forecasts of when the BoE may first start to hike rate amid accusations that Carney had misled them in previous speeches."
- Rabobank (based on MarketWatch)
Pair's Outlook
GBP/USD refused to extend the decline and thus opened this week with a large upside gap. However, in order to negate at least some of the downward pressure the price will have to climb over the resistance at 1.6768/39. It will be a difficult task right now, considering that this supply area is created by the 200-day SMA and monthly S1. On the other hand, one of the key supports, namely the May low at 1.67, is still intact.
Traders' Sentiment
The ratio between the bulls and bears is 60 to 40, meaning a majority of traders believes the Sterling is going to outperform the Buck. But at the same time, there is no significant difference between the buy (55%) and sell (45%) orders.
© Dukascopy Bank SA