© Dukascopy Bank SA
"Sterling has really been driven by the downside for the euro against the dollar."
- Barclays (based on Reuters)
Pair's Outlook
The bearish pressure on the Sterling has somewhat tempered, but the bias remains negative. The monthly S3 should now act as a resistance, while GBP/USD itself is expected to keep moving lower, having violated all the nearby significant supports. The medium-term target is at 1.48, where the currency pair will meet the 2013 low, though the technical indicators are mixed.
Traders' Sentiment
The sentiment towards the Pound is perfectly unchanged—60% of open positons are long. The percentage of the sell orders, on the other hand, keeps decreasing. It has already fallen to 51% (58% yesterday and 60% five days ago), suggesting the supply of the currency is contracting.
© Dukascopy Bank SA