© Dukascopy Bank SA
"There are signs of recovery in the UK, but the euro zone economy is shrinking and that will dent business confidence and hamper sterling"
- Western Union Business Solutions (based on Reuters)
Pair's Outlook
The cable carried more upside potential than EUR/USD, but too gave in to bears and is currently trading lower than today's open price. The closest support could be found at 1.5879, although a more deeper bearish correction, down to 1.5857/43, is likely to be required for the market to regain interest in the Sterling. Nonetheless, GBP/USD overall is bearish, as we move down from the major down-trend resistance line since Sep 28, while support of the same magnitude will be encountered only around 1.5653.
Traders' SentimentThe difference between the shares of bulls and bears on GBP/USD has sharply narrowed, resulting in the sentiment of market participants becoming neutral towards the pair. The same situation is observed with orders placed, as 51% of them are to buy and 49% are to sell the British Pound.
© Dukascopy Bank SA