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"Sterling is pretty cheap in comparison to other European currencies like the Swedish currency even after pricing in the weakness in the UK economy and dovishness from the Bank of England"
- Societe Generale (based on Reuters)
Pair's Outlook
Even though the majority of indicators pointed to the downside, the Cable has pushed higher through 1.5569/1.5609 and is currently struggling at a subsequent resistance line at 1.5650. However, the latter level is unlikely to be strong enough to contain the pair, therefore we expect a tough zone at 1.5721/32 to become a reversal point and send GBP/USD back to supports.
Traders' Sentiment
SWFX marketplace participants' sentiment towards GBP/USD remains neutral, since the share of bullish traders exceeds the portion of bearish ones only by 4% and does not provide ground to identify consensus of the market with respect to the trend the pair will adopt in future. On the other hand, the ratio between buy and sell orders is 60% to 40%.
© Dukascopy Bank SA