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"We are in the camp questioning the need for additional BoE QE at this point, especially as recent economic releases have been marginally more supportive factor"
- BMO Capital Markets (based on Reuters)
Pair's Outlook
The cable has finally gathered sufficient bullish impetus and pushed through 1.5922, thus a road towards 1.5964/79 has been opened. Additional resistances may be found at 1.6021 and especially at 1.6063/93—an area where a major downtrend resistance line is supposed to be met. Until the latter level is reached, the outlook should remain positive.
Traders' Sentiment
An overwhelming majority (71%) of SWFX marketplace participants stay short on GBP/USD despite it behaving bullishly lately. Covering of these positions may push the price of the Sterling even higher. However, the share of sell orders (60%) exceeds the portion of buy orders (40%) and may keep the current balance between bulls and bears even in case the pair steps higher.
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