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"The risk-on sentiment after the China decision hit the dollar and in light of the BoE decision cable (sterling/dollar) has led the way"
- National Australia Bank (based on Reuters)
Pair's Outlook
The first attempt of the Cable to overcome a downtrend resistance line at 1.5538 has been unsuccessful. The currency couple is now likely to pull back to 1.5443, where bullish activity of the pair should be triggered, leading to a repeated challenge of 1.5538 and its consequent violation. In a longer term perspective (several months), GBP/USD is still viewed as capable of reaching 1.6208.
Traders' Sentiment
The share of bullish towards GBP/USD market participants has increased up to 59%, while the portion of bears had dropped down to 41%. On the other hand, 35% and 65% of orders placed on the currency pair are buy and sell orders, respectively.
© Dukascopy Bank SA