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- Bank of America-Merrill Lynch (based on Reuters)
Pair's Outlook
Perhaps not at the initially estimated speed, but GBP/USD is nevertheless moving south. Accordingly, soon there is going to be a test of the 100-day SMA. If this support remains intact, there is likely to be a rally back to 1.6813/1.6776 (55-day SMA, monthly PP and up-trend). Alternatively, if the current momentum is preserved and the Pound closes beneath 1.6717, the next significant support is going to be encountered at 1.65—200-day SMA and monthly S2.
Traders' Sentiment
The bears (54%) have a slight advantage over the bulls (46%), but it is too small to claim that the SWFX traders are net sellers, since this may be changed in a day's time without any excessive volatility in the price.
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