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"Although the weaker UK data would have been a factor I think the biggest market-mover here (for sterling) was the move lower on euro/dollar - it had a knock-on effect because euro/sterling doesn't seem to want to budge that much."
- Jane Foley, Rabobank (based on Reuters)
Pair's Outlook
GBP/USD seems to have stabilised after hitting the down-trend that connects the September and November lows. Accordingly, there is a high possibility of a bullish correction from 1.52 to 1.53, even though the technical studies do not favour appreciation of the Sterling. If the currency pair manages to gain a foothold above this resistance, then the rally will be able to extend to the upper boundary of the bearish channel at 1.56.
Traders' Sentiment
The distribution between the long and short positions is exactly the same as 24 hours ago—60 and 40%, respectively. As for the pending orders, for now the selling pressure is the dominant force—60% of commands are placed to sell the Pound against the Dollar.
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