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"If the ECB delivers bold measures, it could boost investor appetite for taking on risk, helping sterling against the dollar, but if it disappoints it could lead to sharp falls in currencies perceived as higher-risk"
- Reuters
Pair's Outlook
The cable has effortlessly pierced through several supports yesterday, resulting in an accelerated down move, which was only stopped by 1.5533 (weekly S1). Consequently, we expect a bullish correction to occur, though resistance at 1.5573/1.5608 is unlikely to allow the rally to extend, keeping the overall bias bearish. Afterwards, the pair is anticipated to aim for 1.5472/50.
Traders' Sentiment
SWFX traders' sentiment returned to being mixed towards GBP/USD, being that the amounts of long and short positions are equal, both constituting 50% of the market. Distribution between buy and sell orders, being 52% to 48%, also does not disclose at least somewhat certain opinion of market participants with regards to future tendency of the pair for now.
© Dukascopy Bank SA