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"Sterling could be set for declines towards lows hit earlier this month of $1.5269 against the dollar due to concerns that the Bank of England will opt to ease policy to counter the effects of the euro zone debt crisis"
- Reuters
Pair's Outlook
GBP/USD is yet unable to gather sufficient bullish momentum in order to overcome resistance at 1.5600, implying that we might observe a retracement to a key support level situated at 1.5309/1.5257, thus charting a double bottom pattern and then bursting through resistances. An interim support is at 1.5516/1.5485, followed by 1.5370 and 1.5309/1.5257.
Traders' Sentiment
The gap between long and short positions on GBP/USD has contracted, as the portion of bullish traders has decreased to 58%, whereas bears now take up 42% of the market. On the other hand, orders to close long positions or open short ones (61%) continue to greatly outnumber buy orders (39%).
© Dukascopy Bank SA