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"Sterling maybe got a bit over-ambitious against the dollar, but I still think it's going to be stronger versus the euro going forward"
- John Hardy, Saxo Bank (based on Reuters)
Pair's Outlook
After a little hesitation GBP/USD breached an uptrend support line, implying its propensity to decline further. The nearest hurdle lies at 1.6085/81, encounter with which may invoke a shallow rally, but is highly unlikely to turn into a reversal. The present negative bias is also supported by monthly indicators and banks' forecasts for the next three quarters.
Traders' Sentiment
Nearly two thirds of all the traders who have opened positions on the cable stay bearish, whereas merely 34% of them consider the Sterling to be able to appreciate relatively to the greenback. Additionally, the ratio between buy and sell orders is 42% to 58%, respectively.
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