© Dukascopy Bank SA
"The pound will probably move in a narrow range as people refrain from taking new positions before the new year."
- Commerzbank (based on Bloomberg)
Pair's Outlook
Having taken the support at 1.56 out of the way, GBP/USD is currently putting a lot of pressure on 1.55, which in turn does not appear to be an easy target. The demand the currency pair is facing right now is implied by the weekly and monthly S1 levels, meaning there is a substantial risk of a bullish correction extending to a major trend-line at 1.565 before the Cable dives to 1.53 and thus continues its journey towards the 2013 low at 1.48.
Traders' Sentiment
After a significant increase the share of bullish traders stabilised around 59% (58% yesterday). As for the pending orders placed 100 pips from the spot price, the percentage of the sell ones keeps growing—it has already reached 60%.
© Dukascopy Bank SA