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"We're very much in wait-and-see mode. Any signal from Bernanke that the Fed is moving towards QE would be supportive for risky assets, including sterling against the dollar"
- RBS (based on Reuters)
Pair's Outlook
The currency pair appears to be unable to sustain a rally and thus has succumbed to bears who dragged GBP/USD back down to 1.5772/48, where the price might lean on support and stabilise before attempting to gain bullish momentum once again. Resistances at 1.5796 and 1.5824 will stand in it way, but an area at 1.5891/1.5915 has proven to pose a much more serious threat to the pair's recovery.
Traders' Sentiment
SWFX traders' sentiment is stable and bearish with respect to the cable, since 66% stay short on the pair and 34% remain in opposition, finding appreciation of the Sterling as a more likely scenario to occur. Allocation among buy and sell orders is 53% to 47%, accordingly.
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