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"We have a very strong economy that's going to remain strong. While we have exposures to the world, it's not a question of turning the direction."
- Jack Lew, U.S. Treasury Secretary (based on Reuters)
Pair's Outlook
Considering the absence of any significant supports nearby, the bearish tendency is expected to persist. The closest demand area is situated more than 100 pips away from the spot price, namely at 1.4887/61, followed by a much more important 1.4808/1.4788 zone, where the 2013 low and weekly S2 merge. The immediate resistance is at 1.5049, though in the case of a rally it is likely to let GBP/USD rise up to the monthly S3 at 1.5148/45.
Traders' Sentiment
The distribution between the long and short positions was not subject to major changes during the weekend, it is 58% and 42%, respectively. The share of sell orders declined, but remains in a distinct majority, 74% today against 81% on Friday.
© Dukascopy Bank SA