© Dukascopy Bank SA
"The more the dollar weakens, the more chances sterling/dollar will remain above $1.60. The unemployment numbers have weighed down on the dollar and given a lift to stocks and risk"
- Saxo Bank (based on Reuters)
Pair's Outlook
The cable is persistently getting closer to a major downtrend resistance line at 1.6083/99, where its current bullish impetus is expected to be changed to a bearish one. GBP/USD has already faced difficulties at 1.6021/25, implying that considerable selling pressure will not allow the pair to carry on stepping higher. Accordingly, the price should soon refocus on supports, the nearest of which are located at 1.5955 and 1.5876/53.
Traders' Sentiment
Stance of market participants towards GBP/USD has become even more bearish, as the share of short positions has increased up to 72%, while only 28% of traders stay long on the pair. Orders, on the contrary, do not reveal preferences of the market—49% are to buy the Sterling and 51% are to sell it.
© Dukascopy Bank SA