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"People will be looking for levels to resell sterling against the dollar. Nine out of 10 people are bearish on the UK economy"
- Societe Generale (based on Reuters)
Pair's Outlook
After finally piercing 200 day SMA the cable surges further. The only resistance that separates the price from a major downtrend resistance line (1.6103/16) is at 1.5983 and is unlikely to hold GBP/USD for long, even though mostly technical indicators' signals are form neutral to bearish at the moment. Supports at 1.5862/49 and 1.5824/1.5796 should limit possible dips in the meantime.
Traders' Sentiment
SWFX traders' sentiment towards GBP/USD has become even more bearish, since the portion of long positions slid down to 26% of the market, whereas the rest of the market participants (74%) reckon appreciation of the greenback as a more likely scenario. However, the amount of buy orders (60%) considerably exceeds the number of sell orders (40%).
© Dukascopy Bank SA