© Dukascopy Bank SA
"The U.S. economy remains the most robust among the G7."
- BK Asset Management (based on Reuters)
Pair's Outlook
Although the overall bias towards the Cable is bearish at the moment, the British Pound continues to recover. Potentially this rally may extend up to 1.67 (May low and monthly PP), but should be capped by it. If this is the case, the price will then be expected to move South until it reaches this year's low at 1.6250, even though there is going to be a tough demand area at 1.6450 represented by the monthly S1 level.
Traders' Sentiment
The present distribution between the long and short positions in the SWFX marketplace is exactly the same as last week, when 65% of traders were expecting the Sterling to perform better than the U.S. Dollar.
© Dukascopy Bank SA