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"I expect we'll see further dollar strength. I think the next support level will actually be $1.5437, followed by the July 12 low of $1.5393"
- Craig Erlam, Alpari (based on Reuters)
Pair's Outlook
GBP/USD managed to gain a foothold above 1.5504 after a precipitous dip, but is nevertheless expected to weaken further and aim for 1.5411/1.5389 initially and eventually fall down to 1.5283/51. The latter level is capable of changing the present trend to a bullish one, as it is a major downtrend support. However, the previous attempt to lift the Cable failed after confrontation with 55, 100 and 200 day SMAs.
Traders' Sentiment
SWFX traders' sentiment towards GBP/USD is neutral, being that the portion of long positions is 52%, while short ones form 48% of the market. On the other hand, recovery of the currency couple will be hampered by a large number of sell orders, that make up 64% of the total amount of orders placed on the pair.
© Dukascopy Bank SA