© Dukascopy Bank SA
"If we are right about this projection, then the market will probably conclude that the first [BoE] rate hike is not likely until late 2015."
- Scotiabank (based on Reuters)
Pair's Outlook
Due to fundamental factors, the GBP/USD currency pair dropped significantly on Wednesday down to the 2014 low at 1.5874, but was able to return back and close near the 1.60 major level at the end of the day. The resistance level ahead is likely to pose problems for the cross, meaning that the bearish environment is likely to drive the market for the Pound. However, if the pair eventually crosses the mentioned 2014 low, then it will face the next support just 20 pips below, strengthened by 2013 Q4 low and monthly S1.
Traders' Sentiment
While long opened positions increased their share on the market (58%), bullish pending orders in both ranges deteriorated down to 33% and 38% in 50 and 100-pip ranges, respectively.
© Dukascopy Bank SA