© Dukascopy Bank
"Sterling is going to come under pressure against the dollar, which will continue to be the ultimate safe haven in the current environment"
- Morgan Stanley (based on Reuters)
Pair's Outlook
GBP/USD has experienced a massive sell-off yesterday, which does not seem to have ended yet. Being that a key support at 1.5781 has already been violated, the Cable is currently headed towards 1.5616 and 1.5557, below which lie 1.5427 and a long term target 1.5260. In the meantime, rallies should by capped by a relatively strong resistance area located at 1.5869/1.5922.
Traders' Sentiment
Sentiment of traders remains nearly unchanged towards GBP/USD currency couple, as bears continue to dominate the market, constituting 59% of it, while bulls form 41%. On the other hand, within 100 pips from a current price the overwhelming majority of traders have preferred to place sell orders, leaving buy orders in distinct minority - 21%.
© Dukascopy Bank