© Dukascopy Bank SA
"What we're looking for is further consolidation in dollar strength."
- Credit Agricole SA (based on Bloomberg)
Pair's Outlook
A failure of the Cable to close above 1.62 this week resulted in the near-term technical indicators becoming even more bearish—six out of eight studies on the weekly time-frame are now pointing downwards. GBP/USD is now moving in the direction of the 1.590/1.585 area, and the nearest supports, such as the weekly PP and monthly S1 at 1.6030 and 1.5960 respectively, are not seen as a serious threat to the present bearish momentum.
Traders' Sentiment
Most of the traders believe the Pound is undervalued and should recover some of the recent losses—64% of positions are long. Meanwhile, the gap between the buy and sell orders narrowed from 40 to 24 percentage points (in favour of the latter).
© Dukascopy Bank SA