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"The driver of sterling is what happens to the euro. Movements in the euro have a disproportionate effect"
- National Australia Bank (based on Reuters)
Pair's Outlook
GBP/USD returned back above 1.5650 regardless of an expected sharp dip down to 1.5592/81 yesterday, which in turn confirms its intentions to recommence advancement towards 1.5721/43. There the pair will encounter a confluence of resistances, including 200 day SMA, and supposedly will have a hard time overcoming it. In case the rally fails to extend, supports at 1.5592/81 and 1.5542/21 should be able underpin the currency couple.
Traders' Sentiment
In aggregate, stance of SWFX marketplace liquidity consumers towards GBP/USD is neutral and stable, being that the amounts of long and short positions on the pair are nearly equal for the last five trading days. Moreover, distribution of orders above (52%) and below (48%) the current price is almost equal as well.
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