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"The U.S. economy, despite some of the macro headwinds, will likely continue to outpace most of the rest of the industrialized world."
- Commonwealth Foreign Exchange Inc. (based on Bloomberg)
Pair's Outlook
GBP/USD quickly erased Monday's losses as soon as it touched upon the weekly S1 at 1.5050. For now the bulls keep pushing the price higher, willing to breach the resistance at 1.5150, represented by the weekly PP and monthly S3. If they succeed, the rally will be in a good position to extend to 1.53, the current location of the 20-day SMA and monthly S2. Conversely, if they fail, the Sterling is likely to continue to move towards the 2013 low at 1.48.
Traders' Sentiment
Apparently, some traders are beginning to take profits on the Pound's rally, as the share of long positions went down from 58 to 56%. The gap between the buy and sell orders narrowed as well, but from 16 to 6 percentage points in favour of the latter.
© Dukascopy Bank SA