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"We've had better news out of the euro area on the one hand and on the other hand people are pricing in more QE from the Fed and both of those have pushed cable higher"
- Barclays (based on Reuters)
Pair's Outlook
GBP/USD disregards presence of a downtrend resistance at 1.6111/13 and seems unwilling to change its upward direction despite most of technical indicators for weekly and monthly timeframes being bearish. The rally, if it drags on, is unlikely to be sustained above 1.6111/13 unless a point of intersection of uptrend resistance lines at 1.6400/43 is breached.
Traders' Sentiment
The difference between the share of long and short positions continues to grow, as bulls now form only 27% of the market, meaning that traders expected the pair to reverse and decline, but it is still on the rise. The ratio between buy and sell orders is 46% to 54%, respectively.
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