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"I still like sterling against the euro but with this dollar strength I think the action yesterday and overnight showed you that its worth selling cable into any rally. The dollar is only getting stronger."
- a dealer with one large bank in London (based on Reuters)
Pair's Outlook
The rate of British Pound's depreciation relative to the Dollar decelerated ahead of the support at 1.6550. Nevertheless, the bears should remain the main driving force and eventually push the exchange rate down to this year's low at 1.6250. Though there is a strong intermediate level at 1.6450, formed by the weekly and monthly S3. In the meantime, every attempt of the Sterling to recover is likely to be prevented by 1.67.
Traders' Sentiment
The SWFX market participants are currently net buyers of the Sterling, being that 63% of open positions are long and the remaining 37% are short. As for the orders, there is still no difference between the buy and sell ones.
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