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"Stronger data is also at the margin helping the [dollar], as the data acts as a rebut to recent dovish speeches by Ben Bernanke and Janet Yellen."
- Deutsche Bank (based on MarketWatch)
Yesterday the Cable tested the resistance area at 1.5227/1.5175, proving that the strength of supply there is unlikely to let the price rise beyond it. Accordingly, there is an increasing possibility of a bearish wave developing in the nearest future. Some of the support levels that may delay emergence of a dip are located at 1.5080, 1.4938 and 1.4895/44, with the latter being the strongest.
Traders' Sentiment
As noted earlier, the amount of traders staying long on the Sterling in general (52%) and in GBP/USD in particular (45%) is constantly diminishing. At the same time the amount of market participants willing to acquire the Pound is also falling, 39% of orders are buy and 61% are sell.
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