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"Unlike the U.K., the U.S. still has an unemployment story to hang on to and this may be the turning point for GBP to run much higher. The pound could rise as high as $1.75 or $1.80 before the move is over."
- Track.com (based on MarketWatch)
Pair's Outlook
After touching a strong demand area at 1.6743 last week, formed by the 100-day SMA and long-term up-trend, GBP/USD managed to break some of the monthly pivot points and reach the 2009 highs. According to the weekly and monthly indicators, the Sterling should be able to overcome an obstacle at 1.70 and move higher. This would in turn imply an extension of a rally to the upper edge of the bullish channel at 1.7320.
Traders' Sentiment
More and more traders are willing to sell the Pound, since it is getting more expensive. Right now 72% of the market participants expect the currency to lose value, although five days ago only 61% of open positions were short.
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