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"Although a policy rate cut [by the BoE] seems unlikely, quantitative easing still has ample scope to generate currency [GBP] weakness"
- UBS (based on Reuters)
Pair's Outlook
Following a precipitous drop of the cable we may expect a bullish correction to occur, which is unlikely to push the price above 1.6042/85, however. Continuation of a bearish tendency should lead GBP/USD down to 1.5988/61 initially, then 1.5911 and 1.5861, as the long-term target is supposed to be near 1.5601/1.5571, even though weekly technical indicators give "buy" signals.
Traders' Sentiment
Although the portion of short positions has considerably contracted, the sentiment is still bearish towards GBP/USD, as only 40% of the market consists of bulls. As for the orders placed on the pair, there are perfectly equal amounts of buy and sell requests at the moment.
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