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"This week could have been a risky week for sterling, with all the attention being back on the domestic environment. But the newsflow has been a major relief"
- BMO Capital Markets (based on Reuters)
Pair's Outlook
GBP/USD attempts to recover, but has encountered a resistance zone at 1.5688/1.5704 and is thus unlikely to advance further. Moreover, subsequent resistance, which stretches from 1.5736 to 1.5766 and consists of the 200 day SMA and an uptrend line, caps the pair in the long run. Supports, on the other hand, may be found at 1.5656/33 and 1.5618/1.5580.
Traders' Sentiment
Market participants remain bearish towards the cable since the last week and currently 64% of them stay short and 36% stay long on the currency pair. Advantage of bears with respect to pending orders is not as distinct but is still present, since 55% of orders are to sell and 45% are to buy the British Pound.
© Dukascopy Bank SA