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"The pound seems to be following the euro. Back in 2010, while the euro fell to below $1.20, cable fell to below $1.45, so there could be more downside to come"
- Forex.com (based on Reuters)
Pair's Outlook
Bearish movement of GBP/USD is slowing down while the currency pair is approaching a key support situated at 1.5261, where we are likely to observe a strong rebound. Additional levels are located at 1.5212, 1.5171 and 1.5088, decreasing the possibility of 1.5261 being breached and of subsequent reignition of bearish behaviour. An initial resistance is at 1.5443, followed by 1.5538 and 1.5620/67.
Traders' Sentiment
According to SWFX liquidity consumers' sentiment index, the ratio between bullish and bearish traders on the Cable is 57% to 42%, implying the majority of market participants expect the British Pound to appreciate relative to the U.S. Dollar. At the same time 41% of orders on the currency pair are to acquire the Sterling and 59% of them are to sell it against the Greenback.
© Dukascopy Bank SA