GBP/USD to be capped by 1.5301/1.5268

Just as EUR/USD, the Cable jumped higher, but also encountered strong resistance, which is unlikely to let a rally to develop. Above 1.5233 there are also 55 and 100-day SMAs, guarding higher levels. Therefore we are inclined to believe that the Sterling is going to be a little softer from here, probably sliding down to 1.4832/29, Mar 12 low. Moreover, technical studies add to bearish signs, pointing downwards.

Regardless of the strong correlation EUR/USD and GBP/USD have exhibited lately, the attitude towards them is different. While there are few believing the former pair is able to recover, an even greater majority (63%) is convinced that the Pound is capable of gaining value against the U.S. Dollar.