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"Sterling has gone up a long way so inevitably there's now pause for thought and we can see some bets are being taken off the table"
- Bank of New York Mellon (based on Reuters)
Pair's Outlook
The cable was a little short of a one-year high at 1.6300/41 before it stepped back and reversed its direction. GBP/USD may attempt to approach the resistance area once again, though it appears to be solid and thus unlikely to be eroded. The first support to underpin the pair is located at 1.6177/45 and should slow down any bearish activity, but will give in eventually.
Traders' Sentiment
Recent performance of GBP/USD justifies increasingly bearish positioning of SWFX market participants, since 71% of them are currently short on the currency pair. On the other hand, 29% of traders believe the Sterling is going to continue appreciating relatively to the greenback.
© Dukascopy Bank SA