© Dukascopy Bank
"We are looking for more risk-off conditions with the dollar streaking ahead"
- Caxton FX (based on Reuters)
Pair's Outlook
The Cable is currently recovering, following its recent encounter with a support at 1.5784 (200 day SMA). However, the rally is expected to be tepid, given a number of tough resistances that lie overhead - 1.5888/1.5922 and 1.6044/77. Accordingly, GBP/USD is anticipated to refocus supports once it bounces off one of the indicated resistance zones and aim for 1.5544 and then 1.5263/58, after erosion of 1.5784.
Traders' Sentiment
Sentiment of traders remains nearly unchanged towards GBP/USD currency couple, as bears continue to outnumber the bulls (42%), constituting 58% of the market. On the other hand, within 100 pips from a current price the overwhelming majority of traders have preferred to place sell orders (60%), leaving buy orders in distinct minority - 40%.
© Dukascopy Bank