GBP/USD stopped at 1.5142

Source: Dukascopy Bank SA
© Dukascopy Bank SA
"A premature tightening of monetary policy could lead interest rates to rise temporarily but would also carry a substantial risk of slowing or ending the economic recovery and causing inflation to fall further."
- Ben Bernanke, FRS Chairman (based on MarketWatch)


Pair's Outlook

Seems that Cable's short-term bullish correction has come to an end at the weekly pivot point (1.5142), but there is still a risk of a surge up to either 1.5190 (weekly S1) or even 1.5233. Eventually however, GBP/USD should come down to 1.4875/29, as suggested by the technical indicators. The nearest support at 1.5002/1.4964 could potentially delay development of the dip.

Traders' Sentiment
The gap between the long and short positions has narrowed, as the share of the former decreased to 63%, but the majority of market participants continue to believe that the Sterling is bullish relative to the buck. As for the orders, 56% of them are placed to enter the market with a sell trade.
© Dukascopy Bank SA

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