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"The data [on UK economy] is a little bit better than expected and, at the margin, it supports our call of no QE expansion at the June meeting"
- UBS (based on Reuters)
Pair's Outlook
GBP/USD has effortlessly pierced through a number of supports, implying further bearish behaviour in a coming week. Only levels at 1.5427 and 1.5371 separate the currency couple from reaching its long-term target at 1.5259, where we are likely to see the price rebounding. An initial resistance may be found at 1.5509, followed by 1.5545 and 1.5589/1.5616.
Traders' Sentiment
According to SWFX liquidity consumer sentiment index, the share of long positions on the Cable has surged up to 61%, whereas the portion of shorts has fallen down to 39%, indicating increasing conviction of traders the Sterling is going to gain in value. Nevertheless, the majority of orders (63%) on GBP/USD are to short-sell the Pound, while only 37% are to acquire it.
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