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- Neil Jones, Mizuho Bank (based on Bloomberg)
Pair's Outlook
Despite the daily technicals mostly pointing downwards, the exchange rate advanced and reached an important resistance, mainly consisting of the monthly PP and the 2011 highs. Consequently, the risks are now heavily skewed to the downside. The price is expected to fall back to 1.63 and then breach it in order to open a path towards the long-term target at 1.60.
Traders' Sentiment
Despite appreciation of the Pound, the difference between the percentages of long and short positions remains exactly the same—40% and 60% accordingly. Meanwhile, 100 pips from the current trading price, the amounts of buy and sell orders placed on GBP/USD are nearly equal.
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