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"If this [1.60] holds as a support level, this would suggest a move much higher in the coming weeks, potentially targeting this year's highs around $1.63. However, this is likely to be determined by the Fed's actions"
- Alpari (based on Reuters)
Pair's Outlook
After a short correction phase, following an encounter with 1.6021/33, the cable has recommenced advancement and appears to be ready to challenge a monthly R1 the second time. Still, the rally of GBP/USD is expected to come to an end soon, since a downtrend resistance at 1.6084/96 should repel the price once it gets close enough. This is also evidenced by most of weekly and monthly technical indicators and nearly finished formation of a rising wedge, which is believed to be a reversal (bearish) pattern in most cases.
Traders' Sentiment
Bears continue to dominate GBP/USD, since merely 29% of market participants believe the Sterling is capable of increasing in price. Besides, the ratio between buy and sell orders is 48% to 52%, respectively.
© Dukascopy Bank SA