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"The dip below $1.69 this week sends a strong warning signal that a much deeper setback towards $1.6394 could be looming."
- JP Morgan (based on Reuters)
Pair's Outlook
The Greenback underperformed relative to most of its main counterparts last Friday, but it nonetheless managed to gain more ground against the Sterling. If this tendency continues, the support at 1.6768/59 (weekly and monthly S1) may soon come into play, but an upward correction is more likely to start a little lower, near 1.67, where the 200-day SMA merges with the May low. Meanwhile, a majority of the monthly indicators is bullish.
Traders' Sentiment
Five days ago a substantial part of the traders was expecting the Pound to lose value (63%), now the same amount is in favour of it appreciating against the Dollar—62%. The market is probably waiting for an upward correction.
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