© Dukascopy Bank SA
"Short sterling/dollar with a stop at $1.5750 could be an attractive position to start the week"
- Societe Generale (based on Reuters)
Pair's Outlook
After choppy trading the cable commenced recovery and is now approaching formidable resistance at 1.5726/56, which is reinforced by 1.5783/91 and 1.5824 and thus is unlikely to give in and pave the way towards 1.5883. Accordingly, we expect the currency pair to decline and pull back down to 1.5637/08 first. Then GBP/USD will be able to target 1.5249/33 in the longer term.
Traders' Sentiment
The gap between bullish and bearish market participants has narrowed down to 12%, signifying less pronounced dominance of negative sentiment towards the British Pound than yesterday. The ratio of buy and sell orders placed on the currency pair is 47% to 53%, respectively.
© Dukascopy Bank SA