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- Newedge Group (based on Bloomberg)
Pair's Outlook
GBP/USD continues to aimlessly oscillate between the resistance at 1.6237/14 and the support at 1.6074/34. Nevertheless, the bearish risks dominate, implying that a break-out to the downside is a more likely scenario given the current conditions. Once the monthly PP and the 55-day SMA cave in, the rising support line, monthly S1 and the 100-day SMA will come under selling pressure.
Traders' Sentiment
The British Pound remains one of the least preferred currencies in the SWFX market, being acquired in merely 28% of trades in its crosses. The U.S. Dollar, on the other hand, is one of the most popular currencies—58% of all the positions on it are long. Particularly in GBP/USD the ratio between the longs and shorts is 28% to 72% respectively.
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