© Dukascopy Bank SA
Generally we would assume that the Sterling is poised for a rally given the current conditions. The rectangle is deemed to be a continuation pattern, and, before entering consolidation between 1.6258 and 1.5874, the pair has been on the rise for three months since the beginning of July.
On the other hand, there is a strong argument against the development of a bullish scenario. Starting from May of 2012 the resistance at 1.6258 has stopped every attempt of the Cable to advance beyond it. As for the traders' sentiment towards GBP/USD—71% of them are inclined to believe that the Pound will fail to appreciate.
© Dukascopy Bank SA