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"The market is building up short-sterling positions inspired by a dovish reading on the Inflation Report."
- Rabobank International (based on Bloomberg)
Pair's Outlook
The downward pressure persists, as the bulls failed to push the price away from 1.56. If this support is broken, GBP/USD will likely reach the monthly S3 at 1.5450—one of the few levels separating the spot from 1.48, namely the 2013 low that is considered to be the long-term target. However, the monthly technical indicators continue to oppose the bearish scenario—most of them are presently giving 'buy' signals.
Traders' Sentiment
As the Sterling depreciates, the bulls gained a small advantage over the bears—the percentage of long positions in the market went up to 56%. But there is still no significant difference between the numbers of buy (48%) and sell orders (52%).
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