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"Over the next six months euro/sterling is going to continue to fall slowly in the absence of a euro zone break-up, but cable is going to fall also, possibly down through $1.52"
- Credit Agricole (based on Reuters)
Pair's Outlook
Regardless of pair's long-term bearish outlook, GBP/USD managed to pierce through resistance at 1.5521/42 and confront 1.5569/1.5609. Today the price is expected to consolidate just below the latter level, accordingly, no pronounced movements are anticipated. In case the Cable resumes recovery started on July 13, it will encounter 1.5650 and 1.5719/27.
Traders' Sentiment
Traders' sentiment is stable and mixed with the respect to GBP/USD, being that the amounts of long and short positions remain nearly equal. Most of orders (60%), on the other hand, are sell orders. Consequently, rally of the pair will encounter considerable resistance from market participants.
© Dukascopy Bank SA