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"Sovereign divergence is at work here. Large investors around the world are reassessing their currency holdings and money is shifting from the euro zone to the U.K. That's benefiting the pound."
- Mizuho Bank (based on Bloomberg)
Pair's Outlook
The bulls failed to push the price through the resistance at 1.6813/1.6783, represented by the up-trend line, monthly PP, 55-day SMA and others. It is now 100-day SMA's turn to prove its worth and prevent the current dip from extending deeper. If the decline is not stopped, the Sterling will most likely target the monthly S1 at 1.6636/31, before attempting to test an even more important support level at 1.6525/10 (monthly S2 and 200-day SMA).
Traders' Sentiment
The bears preserve a small advantage over the bulls, who in turn are currently in a minority with 41% of the market. Concerning the orders, there is no significant difference between the amounts of the buy (54%) and sell (46%) ones.
© Dukascopy Bank SA