© Dukascopy Bank SA
- Societe Generale (based on CNBC)
Pair's Outlook
GBP/USD ignored the resistance at 1.6500/1.6470 (2011 highs and monthly PP) and soared up to the next important supply area at 1.6674/32. Here the monthly R1 and January high will attempt to stop the rally from extending any further. If it fails to do so, the currency pair will be expected to test the up-trend resistance line at 1.6750, where the chance of a sell-off will increase even more.
Traders' Sentiment
The sentiment towards the British Pound is becoming more and more bearish lately, as it is broadly considered to be overvalued relative to the greenback. Right now 67% of positions are short on GBP/USD. Concerning the orders, 61% of them are to sell the Sterling against the buck.
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