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"With all that has been going on, sterling is performing extremely well."
- Morgan Stanley (based on Reuters)
Pair's Outlook
Since GBP/USD has already closed the bearish gap and the pair is fluctuating near the resistance at 1.6040, the Sterling is unlikely to add to the gains from 1.5950. The four-month down-trend coupled with the monthly PP are expected to act as a ceiling and send the price towards the demand at 1.5870/50. In order for the negative outlook to be confirmed, this zone has to be broken. Then there will be a good chance of the Pound sliding to the 2013 low at 1.48.
Traders' Sentiment
Noticeably less people than 24 hours ago are bullish towards the British Pound. The portion of long positions contracted from 65 to 58%. Meanwhile, the distribution between the buy (48%) and sell (52%) orders remains stable.
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