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"Since the UK will hold a referendum of Brexit and low inflation may prompt the BoE to defer its first rate hike to Q2 2017, Citi analysts revised down GBP/USD 0-3 month forecast from 1.50 to 1.49."
- Citibank (based on ExchangeRates.org.uk)
Pair's Outlook
Due to poor US fundamental results on Wednesday, the GBP/USD currency pair recovered from intraday lows and ended the day relatively flat. Technical studies continue to give bearish signals today, suggesting the pair is likely to extend its declined and fall under 1.48. Furthermore, the weekly and monthly S1s are still providing resistance around 1.4860, leaving little space for a rally to take place. Immediate support is located at 1.4759 in face of the weekly S2, but another set of fundamental data could cause a rebound towards the 1.4860 resistance cluster.
Traders' Sentiment
For the third consecutive day the share of bulls takes up 65% of the market, whereas the share of buy orders edged up from 53 to 54%.
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