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"Sterling/dollar will be dragged down along with euro/dollar as euro zone risks dominate"
- Standard Chartered Bank (based on Reuters)
Pair's Outlook
Unable to overcome a key resistance zone at 1.5718/29, GBP/USD is heading towards 1.5291/56 in the medium term, however, it will have to pierce through 1.5446 and 1.5389/85. In the meantime, the Cable is oscillating and may soon challenge an interim resistance located at 1.5543/53, followed by additional levels at 1.5583/1.5609 and 1.5646/74.
Traders' Sentiment
SWFX traders' sentiment index stays unchanged since the end of the previous week, as the amounts of bulls and bears are equal at the moment, pointing to general indecision of the market with respect to the trend GBP/USD will adhere to in near future. The ratio between buy and sell orders is 39% to 61%, respectively, implying that the price is likely to continue sliding down after a rally.
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