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"The U.K. economic backdrop may not be brilliant, but it's enjoying a haven status because of the political uncertainty in the euro zone"
- Morgan Stanley (based on Bloomberg)
Pair's Outlook
Rally of the Cable has been halted by a tough resistance situated at 1.6106/11, which is reinforced by additional level situated at 1.6150/62, being a temporary cap for the pair. Therefore the focus is on supports. The initial level may be found at 1.6015/1.5995, followed by 1.5959 and 1.5892/69, motion towards which is a favoured scenario, given the signal suggested by short term technical indicators.
Traders' Sentiment
Traders' sentiment is little changed towards the Cable since the previous report yesterday, as the market is 41% bullish and 59% bearish on GBP/USD at the moment. Within 100 pips from the current price overwhelming majority of orders (69%) are to sell the pair, while buy orders (31%) are in distinct minority.
© Dukascopy Bank