GBP/USD retests the major support

Source: Dukascopy Bank SA
© Dukascopy Bank SA
"The UK economy is set for a slow but sustained recovery in both demand and effective supply... But the risks are weighted to the downside, not least because of the challenges facing the euro area."
- Bank of England (based on Reuters)

Pair's Outlook
Even though the Cable has gone through the major support line in the beginning of the week, its magnitude is too strong to let the price easily fall down. The pair attempted to test a 1.5623/02 level yesterday, but bearish sentiments were lacking power and the pair quickly went back to retest a long-term support at 1.5725. It would be rational to open trading positions if the price certainly settles beneath the major support.

Traders' Sentiment

The gap between bulls and bears in GBP/USD has widened even more, as the buy side has reached 60% and the sell side has 40%. Pending orders market is neutral and supporting both side, as bulls and bears have equal shares.

© Dukascopy Bank SA

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