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"GBP/USD is a by-product of euro weakness. It could move lower as there is huge demand to buy dollars"
- Danske Bank (based on Reuters)
Pair's Outlook
The Cable is eroding a support at 1.5371 at the moment, after which we are likely to observe a dip down to 1.5259 - a key support. Despite the strength of the bearish momentum, which is shown by the daily indicators, the currency couple should stabilise ahead of the latter level, as suggested by longer term studies. An interim resistance lies at 1.5500/37, followed by 1.5589.
Traders' Sentiment
The portion of traders holding long positions on GBP/USD continues to increase, as the market is composed of bulls for 66%, implying a common belief the Sterling is about to commence appreciation against the U.S. Dollar. However, the share of buy orders is significantly lower than the portion of sell orders, being 39% and 61% of the market, respectively.
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