© Dukascopy Bank SA
"The shift in policy in the U.S. should stand out against most other major central banks. The dollar will remain on a fairly modest upward path over the course of next year."
- Royal Bank of Canada (based on Bloomberg)
Pair's Outlook
For the time being the currency pair remains trapped between the weekly pivot at 1.5567 and a cluster of supports at 1.55. Considering GBP/USD has been forming a falling wedge pattern over the last 6-7 months, we should be wary of a possible break-out to the upside. In case the upper boundary is breached, the Sterling will most likely keep moving north until it hits the resistance at 1.5760, where the monthly PP merges with the 55-day SMA.
Traders' Sentiment
The sentiment remains remarkably stable—58% of open positions are still long. The distribution between the buy and sell orders, on the other hand, is constantly changing—the percentage of the former placed 50 pips from the spot went up from 51 to 66%.
© Dukascopy Bank SA