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"We continue to expect the MPC to loosen policy at its November meeting, with a 50 billion pound extension of asset purchases and, more speculatively, a 25 basis point cut in Bank Rate"
- Barclays (based on Reuters)
Pair's Outlook
After breaching 1.6139 the cable is likely to challenge 1.6085/62, penetration of which in turn will pave the way towards 1.5988/56. Rallies in the meantime are to be contained by 1.6139 in conjunction with a formidable area at 1.6184/1.6212, largely formed by a major downtrend resistance line. In the long term we still favour bearish scenario and eventual attainment of 1.5601/1.5575.
Traders' Sentiment
Judging by SWFX traders' sentiment on GBP/USD, the pair is strongly oversold, since 72% of positions are currently short, whereas the share of long ones is merely 28%. At the same time distribution between orders placed does not give a distinct signal, being 53% to 47%, accordingly.
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