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"There should be good short-term support at $1.5640, and with an upward revision in Q2 GDP likely later in the week, we would be wary of getting negative on sterling"
- Lloyds (based on Reuters)
Pair's Outlook
Bulls are once again challenging a formidable resistance zone at 1.5737/69, which includes the 200 day SMA; but their attempts are more likely to fail than succeed, as the currency couple was unable to overcome the 200 day SMA for more than two and a half months, implying that bearish outlook on GBP/USD persists. Accordingly, the Sterling is anticipated to weaken to 1.5700/1.5688 initially and afterwards to 1.5657/33.
Traders' Sentiment
The percentage of long positions in SWFX marketplace has decreased even further and is 34% at the moment, meaning that the prevailing view on the cable is bearish. Sell orders (52%) exceed buy orders (48%) as well, though the advantage is not pronounced.
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