© Dukascopy Bank SA
"Sterling has more upside against the dollar after the Fed announced (potentially) unlimited amounts of QE. It should be in for a prolonged period above $1.60"
- Moneycorp (based on Reuters)
Pair's Outlook
GBP/USD is rapidly approaching another major downtrend resistance line, which constitutes the main part of an area at 1.6400/70. The currency pair is expected to bounce off this zone and eventually return back to the levels three-four months ago, i. e. within the range 1.53-1.54. Prior to that, the cable should confront resistances at 1.6261 and 1.6331.
Traders' Sentiment
Despite GBP/USD constantly climbing higher, 72% of SWFX marketplace traders hold short positions, leaving only 28% of the market to bulls. As for the orders, they give a less distinct signal—48% of them are to buy the British Pound and 52% are to sell it against the U.S. Dollar.
© Dukascopy Bank SA