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"We are in an upchannel after reaching that low in late May, and the base of that would be $1.5530 - I'd be very worried that we'd fall further if we got below $1.5530"
- Kathleen Brooks, Forex.com (based on Reuters)
Pair's Outlook
GBP/USD hovers just above a formidable support area at 1.5637/07 and thus should challenge resistance at 1.5728/30 prior to a dip back to this zone. Moreover, technical indicators also suggest a tepid rally before another down leg, which might extend down to 1.5249/33, given that 1.5573 is breached and 1.5482/72 and 1.5450/19 does not provide sufficient support.
Traders' Sentiment
The difference between the shares of short and long positions on the cable has grown up to 16%, indicating increasing conviction of market participants that the Sterling is about to depreciate relatively to the U.S. Dollar. The situation with orders, however, is not as univocal, since only 52% of them are to sell the British Pound.
© Dukascopy Bank SA