GBP/USD holds bearish bias

Source: Dukascopy Bank SA
© Dukascopy Bank SA
"The bottom line for the dollar is that heightened tapering risks reinforce the ‘stronger U.S. dollar' theme that we expect to gain traction into 2014 as U.S. cyclical leadership becomes more evident and U.S. [Treasury] yields rise for the ‘right' reasons."
- Bank of England Governor (based on MarketWatch)

Pair's Outlook

Considering a tough resistance line at 1.5750, the risks on the Cable remain skewed to the downside. At the moment 1.5421/1.5388 provides sufficient support; however, a second attempt to surpass 1.5750, a scenario suggested by technical studies, is expected to fail and entail a dip extending beneath the down-trend support line, closer to 1.5233.

Traders' Sentiment
Most (62%) of SWFX marketplace participants anticipate further depreciation of the Sterling and therefore view the recent rally only as a temporary upward correction. As for the orders placed on the currency pair, 53% of them are to open long and 47% to open short positions.
© Dukascopy Bank SA

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