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"The market needed to hear something reassuring from Bernanke: that the Fed was there, was going to provide support, and was nowhere near to backing away. They got that."
- Prudential Fixed Income (based on CNBC)
Pair's Outlook
The currency pair has confirmed its intentions to decline, being that the resistance area at 1.5264/26 was confirmed as a likely ceiling in the nearest future. Therefore GBP/USD is now aiming for an interim support level at 1.4978/44. If the downward momentum is preserved, then the price could try to approach the monthly S3 at 1.4853/1.4793. However, only a few technical studies are giving "sell" signals.
Traders' Sentiment
The Sterling stays the most preferred currency, as 70% of positions opened on its crosses are long. Specifically in the Cable dominance of bulls is even more preeminent, as they take up 74% of the market. On the other hand, 72% of orders placed on GBP/USD are the sell ones.
© Dukascopy Bank SA