© Dukascopy Bank SA
|
"This [oil demand] is mostly driven by crude oil prices, and absent a sudden spike we very well may see a drop of a few pennies more. That said, demand is up at these low prices."
- Lundberg (based on Reuters)
Pair's Outlook
The second part of the week was rather bearish for the pair, as it fell to the lowest level this year; however, it has recovered since then. Currently, the GBP/USD cross is sitting above the 1.56 level and around the weekly PP at 1.5654. Despite the monthly technical indicators are pointing upwards, we are still more bearish towards the pair. Nevertheless, most likely we will see a sideways movement through the week.
Traders' Sentiment
As the pair is currently consolidating, there are still no changes in the distribution between the bullish (56%) and bearish (44%) market participants. As for the orders, as many as 59% of them are to sell the Pound against the US Dollar.