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"The downward revision to UK first quarter GDP, dire retail sales data, UK CPI inflation, worrying German survey data and strengthening headwinds from the euro zone all suggest the case for more QE from the BoE is mounting"
- Rabobank (based on Reuters)
Pair's Outlook
The Cable is pushing through another support at 1.5654 and is likely to maintain its downward course until a key level situated at 1.5263/59 is reached. However, while advancing towards the latter line, the currency pair has to overcome 1.5616, 1.5553, 1.5497 and 1.5427. Therefore the slide down should not be straightforward and in a very first attempt.
Traders' Sentiment
SWFX sentiment index is currently neutral on GBP/USD, since the portions of bullish and bearish trades is nearly equal, being 49 and 51 per cent of the market, respectively. On the other hand, slightly more than two thirds of orders placed 200 pips away from the current price are to sell the Sterling against the US Dollar, implying increased possibility of GBP losing in value.
© Dukascopy Bank