© Dukascopy Bank SA
"A few bits of [U.K.] data have been positive and that's been the trigger for people to pull back on (easing) expectations. I think it will be mildly positive for sterling"
- Michael Sneyd, BNP Paribas (based on Reuters)
Pair's Outlook
The cable stays largely undecided, refusing to leave vicinity of a major down-trend resistance line at 1.62. However, in order to test it, the currency pair will have to overcome 1.6058/65 and 1.6086/90 first, thus giving little reason to believe in a bullish outlook. Eventually, the focus is therefore likely to shift on supports, the nearest of which are located at 1.5957/54 and 1.5905/1.5895.
Traders' Sentiment
The recent tendency reveals rapid reduction of short on GBP/USD positions. Even though for now bears preserve advantage over bulls, they now constitute 61% of the market, down from 68% on Friday. The current ratio between buy and sell orders is 45% to 55%, respectively.
© Dukascopy Bank SA