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"Recent weak inflation numbers appear to have alleviated the pressure to tighten monetary policy. […] We think the risk of waiting a few more months to start raising interest rates outweighs the risk from a premature tightening."
- National Institute of Economic and Social Research (based on New York Times)
Pair's Outlook
Following its pan-European peer, the British currency lost value against the Greenback yesterday, as the pair surpassed a major support at 1.5852, represented by 2013 Q4 low. At the moment the cross is hovering between this level and monthly S1 at 1.5826. If testing of the latter one is successful, then we can predict the Pound to drop down to monthly S2 at 1.5662 in the medium-term, which is strengthened by weekly S3 around 20 pips lower. Technical studies, in turn, became less negative on the Pound's perspectives.
Traders' Sentiment
Distribution of opened positions for GBP/USD pair changed marginally during last 24 hours. 59% of traders still hold bullish positions and expect the Pound to recover.
© Dukascopy Bank SA