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- State Street Global Advisors (based on Reuters)
Pair's Outlook
Despite our expectations GBP/USD spiked through the nearby resistances, including the August high, and approached the highest level since July (1.3480). Disappointing US data gave the pair strong impetus yesterday, but trading still seems to be bound by the bullish channel. This means 1.3500/1.3480 should act as a ceiling, while near-term outlook is bearish, as we wait for a downward correction within the pattern. The price is thus likely to retreat to 1.33, before it stabilizes and then resumes recovery from 1.29 that was started in mid-August.
Traders' Sentiment
Distribution between the bulls and bears remains the same—38% of traders are long and 62% are short the Sterling. However, the share of sell orders has noticeably decreased since the last report, namely from 64 to 58%.
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