© Dukascopy Bank SA
"More accommodation from the BoE and growing concerns about the UK economic and sovereign rating outlook should remain important pound negatives going forward"
- Citi (based on Reuters)
Pair's Outlook
GBP/USD is approaching a significant support level at 1.5472/50, behaviour of the pair near which may define its performance in the medium-term. In case the cable bounces off the support, then 1.5729/81 (100 and 200 day SMA and an uptrend resistance) will soon be retested. On the other hand, if 1.5472/50 does not withstand, 1.5253/24 will be targeted next.
Traders' Sentiment
Even though the portion of bullish traders has increased, SWFX traders' sentiment remains mixed towards the cable, being that the ratio between long and short positions is presently 52% to 48% and in general traders do not seem to have a consensus with respect to the outlook on the pair. As for the orders, 43% of them are buy orders and 57% are sell orders.
© Dukascopy Bank SA