© Dukascopy Bank SA
"There are expectations for monetary policy to be less loose and that does support sterling"
- Barclays Plc (Based on Bloomberg)
Pair's Outlook
The cable failed to close beneath the 55-day SMA for two consecutive days and is presently headed towards a major downtrend resistance line at 1.6164/99, as suggested by weekly technical indicators. In the meantime, near-term dips are to be contained by a formidable cluster of supports that stretches from 1.6086 down to 1.6047.
Traders' Sentiment
According to positioning of market participants, GBP/USD is expected to decline. An overwhelming majority of traders (73%) currently hold short positions, leaving bulls in a distinct minority—29% of the total amount. On the other hand, there are 51% of buy orders and 49% of sell orders.
© Dukascopy Bank SA