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"We are surprised that sterling has been perceived as a safe haven. On paper it doesn't have the characteristics and as King pointed out there is considerable exposure to a deterioration in the euro zone"
- HSBC (based on Reuters)
Pair's Outlook
At the moment GBP/USD struggles with a support situated at 1.5922/1.5869, which is about to be eroded, given strong downward impetus of the pair after encountering a tough resistance. In order to confirm further bearish intentions, the Cable, however, will have to push through 1.5781 (200 day SMA), thus opening the way towards attainment of 1.5262.
Traders' Sentiment
The ratio between bullish and bearish market participants is 40% to 60%, being an inconsiderable change since the previous report yesterday. On the other hand, 100 pips from 1.5969, being a current price, an overwhelming majority of traders (76%) have preferred to place sell orders, expecting the Cable to continue losing value relative to the US Dollar after a tepid rebound.
© Dukascopy Bank