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"Sterling registered a brief uptick on the back of a stronger-than-expected CPI inflation report, though there is little chance that the disappointingly strong inflation data will do anything to alter the BoE's dovish stance"
- Rabobank (based on Reuters)
Pair's Outlook
GBP/USD quickly retraced back towards 1.5637/10 after bumping into a key resistance at 1.5721/56, confirming that the market still respects 100 and 200 day SMAs and an uptrend line. Since the cable does not possess sufficient bullish impetus at the moment, it is likely to focus on eroding supports until an important level such as 1.5573 or even 1.5249/33 is attained.
Traders' Sentiment
Traders' sentiment has become more bearish towards GBP/USD, since the share of short positions has increased up to 63%, while the portion of long ones has decreased to 37%. The similar but less distinct picture is observed with orders placed on the pair, as the ratio between sell an buy orders is 56% to 44%, respectively.
© Dukascopy Bank SA