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"Although sterling has received some support from the situation in the euro zone, there are some challenges in terms of U.K. economic fundamentals that could limit any rebound in sterling"
- Morgan Stanley (based on Bloomberg)
Pair's Outlook
GBP/USD pair's exchange rate was pushed up to a six-week high at 1.5978 yesterday, however, the price lost its upside impetus in the second part of a trading session, and the price fluctuated in a down-sloping channel, reaching a 1.5925 level. Currently, the exchange rate increases and it is very likely that it will reach 1.5985, the Fibo 261%, from a correction wave down since November 16th. If this level does not stop the appreciation, than 1.6020/50 range should slow it down.
Traders' Sentiment
SWFX market participants stay with slightly bullish sentiments, as 51% of traders have a buy position and 49% have a sell position. Conversely for the spot market, placed orders segment is bearish, as the buy orders have 46% and the sell orders have 54%.
© Dukascopy Bank SA