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"We believe investors should remain wary of sterling/dollar, as the Fed may not take aggressive steps at its June meeting, while the risks remain that the BoE votes to start a third round of QE in July or August"
- UBS (based on Reuters)
Pair's Outlook
GBP/USD is still being capped by a tough downtrend resistance line at 1.5535/45, which should be overcome eventually, given strong positive outlook of the currency couple, which will be preserved as long as a key support level located at 1.5271/57 is intact. Following a bullish breakout of 1.5535/45, the Cable is likely to target 1.5649/67 next, then 1.5764/70.
Traders' Sentiment
Traders' sentiment towards GBP/USD is little changed since yesterday, as the share of bullish market participants has only dropped 1% to 63%. Accordingly, the share of bearish traders has increased by the same amount up to 37%. As for the orders placed on the currency couple, 43% of them are buy and 57% are sell orders.
© Dukascopy Bank SA