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"The trade balance and industrial production suggest that the [U.K.] economy may have struggled to recover in the third quarter"
- Citi (based on Reuters)
Pair's Outlook
GBP/USD declined along with EUR/USD, although to a more modest extent. The currency couple is presently attempting to overcome 1.6000/1.5967 and is expected to remain on a bearish path, even though a chance of a consolidation/correction increases. The next target lies at 1.5911, while the nearest serious threat to current downward tendency is located at 1.5828/04 (200-day SMA).
Traders' Sentiment
A considerable amount of traders, namely 63% of the market, are holding short positions on GBP/USD, expecting the Sterling to carry on depreciating relatively to the U.S. Dollar. Accordingly, only 37% of them believe in an alternative scenario and stay long on the currency pair.
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