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"Some of the shine has come off the good news as people pay more attention to the UK balance of payments"
- Societe Generale (based on Reuters)
Pair's Outlook
Rally above 1.6223 proved to be unsustainable, sending the cable back beneath 1.6170. Support at 1.6100/1.6085, however, halted depreciation of the Sterling and may provide sufficient bullish impetus for the price to retest a major downtrend resistance at 1.6223, although long-term technical indicators give "sell" signals and thus advancement is unlikely to be continued from there.
Traders' Sentiment
Stance of market participants with respect to GBP/USD is strongly bearish and stable, as an absolute majority of traders (74%) stay short on the pair and only 26% believe the British Pound is going to gain value relatively to the greenback. Nonetheless, distribution of orders between buy and sell (49% to 51%) neither supports nor contradicts the negative outlook suggested by current positioning.
© Dukascopy Bank SA