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"Sterling has been holding up well. UK data has been better of late and it's a guessing game on whether or not the Bank of England will undertake more QE"
- ETX Capital (based on Reuters)
Pair's Outlook
GBP/USD is about to hit a one-year high at 1.6300, which is also reinforced by resistance at 1.6329/31. In view of this, advancement of the currency pair is not as determined as it was previously, leading to a conclusion that probability of a correction continues to increase, although support at 1.6177/45 should prevent extension of a likely decline.
Traders' Sentiment
A significant portion of SWFX marketplace participants stay short on the cable, waiting for the Sterling to start depreciating. Accordingly, only 25% of traders are long on the pair. In the meantime, distribution between buy and sell orders does not support neither bullish nor bearish outlook, being one-to-one.
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