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"We expect there will be a rate hike [by the BOE] by the end of the year and the market will gradually position for such an outcome."
- BNP Paribas (based on Bloomberg)
Pair's Outlook
Although the market seems to be respecting the resistance at 1.6813/1.6783 (55-day SMA, monthly PP and up-trend), the supply is not enough to overpower the demand and send the Sterling south. If the weekly and monthly technical studies turn out to be correct, and the price rises, GBP/USD will most likely be looking for an encounter with the 2009 highs at 1.70. Alternatively, the pair should descend back to the 100-day SMA at 1.6732.
Traders' Sentiment
The traders' sentiment stays moderately bearish towards GBP/USD—40% of open positions are long and 60% are short. As for the orders placed 50 pips from the spot, 43% are to purchase and 57% are to sell the Pound.
© Dukascopy Bank SA