© Dukascopy Bank SA
"Realized volatility in GBP, with a downside bias, likely will increase for an extended period."
- Barclays (based on CNBC)
Pair's Outlook
The Cable started this week beneath the 2014 low (1.6250), as result of a 150-pip large downside gap. The Sterling should now try to negate this loss in the nearest future—to move North until the monthly S2 and weekly PP at 1.63. And even though the monthly technical indicators are still mostly giving ‘buy' signals, the overall outlook will remain bearish, with the 2013 Q4 low at 1.5850 being the next likely target.
Traders' Sentiment
The sentiment among the SWFX market participants is bullish towards GBP/USD—66% of open positions are long and 34% are short. As for the orders, 57% are to buy and 43% are to sell the Pound.
© Dukascopy Bank SA