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"Some of safe-haven flows which have been coming from the euro zone are probably slowing due partially to the belief the ECB will deliver. The ECB meeting from that perspective is going to be important for sterling"
- Morgan Stanley (based on Reuters)
Pair's Outlook
The currency couple failed to sustain a rally and is currently pulling back to 1.5837, however, it is not anticipated to restore bullish outlook on the pair. A support zone at 1.5792/55, on the other hand, might provide sufficient buying pressure in order to commence short-term recovery of the price. In the long run GBP/USD still preserves potential to attain 1.6098.
Traders' Sentiment
A substantial majority of traders (67%) perceive the Sterling as a bearish currency relatively to the U.S. Dollar, since only 33% of all the positions in SWFX marketplace on GBP/USD are long. Nevertheless, the current ratio between buy and sell orders is 52% to 48%, respectively.
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