© Dukascopy Bank SA
"The problem with sterling/dollar at the moment is that with optimism for a rate hike next spring now appearing to be nothing other than wishful thinking, and with the UK general election starting to get attention, investor attraction towards the pair is limited."
- FXTM (based on Reuters)
Pair's Outlook
GBP/USD remains range-bound, with the ceiling and the floor represented by 1.57 and 1.56, respectively. In case the resistance gives in, the Sterling will be expected to rise up to the 2013 Q4 low at 1.5850, where it coincides with the monthly S1 and a five-month down-trend line. Conversely, should the bears manage to gain the upper hand over the demand at 1.56, this will expose 1.5450, namely the monthly S3 level.
Traders' Sentiment
The advantage of the longs over the shorts has increased since the previous report—the share of the bulls advanced from 56 to 59%. In the meantime, the portion of the orders to sell the Pound also grew, but from 58 to 61%.
© Dukascopy Bank SA