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"With the BoE forecasting a further decline in inflation, the BoE has further scope to pursue further quantitative easing. In fact, we expect them to announce another GBP50 billion of QE via gilt purchases on Thursday"
- BNP Paribas (based on MarketWatch)
Pair's Outlook
Despite GBP/USD edging higher, currency pair's current upward momentum is deemed too weak to overcome 1.5733/35 at the moment. Therefore the price is likely to bounce off this resistance and perform a bearish correction down to 1.5624/20 or even to 1.5570/34 prior to commencing robust recovery up to a long-term target that lies at 1.6140.
Traders' Sentiment
The gap between portions of bullish and bearish traders has increased up to 16% from 4% yesterday, implying increasing conviction of the market the Sterling in about to depreciate, while there is no similar unambiguity among orders, as buy orders constitute 49% of the total amount whereas sell orders - 51%.
© Dukascopy Bank SA