© Dukascopy Bank SA
"The market has already priced in considerable tightening from the Bank of England over the next 12-24 months whereas the market is only just starting to price in potentially earlier hikes by the Fed, which is supporting the dollar."
- Citigroup (based on Reuters)
Pair's Outlook
There is now little hope for the bulls, being that GBP/USD has broken most of its main supports. The monthly technical indicators may still remain positive, but, given the absence of any significant demand areas nearby, the risks are heavily skewed to the downside. One of the few levels that are deemed capable of turning the current bearish tendency around is 1.67, formed by the 200-day SMA and May low.
Traders' Sentiment
There is still no difference between the amounts of bullish (51%) and bearish (49%) market participants, meaning the overall sentiment is neutral. Speaking of the orders, there is also no gap between the buy (50%) and sell (50%) ones.
© Dukascopy Bank SA