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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 Cable committed a decline yesterday, increasing the chances the pair is going to test the initial support level at 1.5534. Despite the strength of the bearish momentum, which is shown by the daily indicators, the currency couple should stabilise ahead of the latter level, as suggested by longer term studies. An interim resistance lies at 1.5667, followed by 1.5754.
Traders' Sentiment
The portion of traders holding long positions on GBP/USD continues to increase and for now the sentiment remains mixed as 52% of traders hold longs. However, the share of buy orders is significantly lower than the portion of sell orders, being 39% and 61% of the market, respectively.
© Dukascopy Bank SA