© Dukascopy Bank SA
"Sterling could also give up its recent gains if the central bank says that interest rates will be not be increased if inflation is less than 1.5%, which would be a further commitment to low rates."
- BK Asset Management (based on MarketWatch)
Pair's Outlook
Pair seems to have lost some tempo after a strong rally few days ago as Fibo 61.8% (mid of June till beginning of July) is keeping it at bay. Taking in to account increasing pressure from the 200-day SMA it seems unlikely pair will manage to advance further. Scenario where it trails towards 1.52, where expectations of major market participants are concentrated, seems much more likely at the moment.
Traders' Sentiment
Bulls are not willing to give up easily since share of short positions in the market dropped by 2% till 57%. However, pending short orders increased by 3% and is at 67% indicating that bears might have already taken up the upper hand in the market.
© Dukascopy Bank SA