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"The dollar is in the beginning of a multi-year strengthening pattern."
- Deutsche Bank AG (based on Bloomberg)
Pair's Outlook
The Cable keeps trading around its monthly S2 level, being limited by the resistance at 1.57 from the upside and the support at 1.56 from the downside. According to the near-term indicators, the bearish risks prevail and GBP/USD should update this year's low; on the other hand, the monthly studies are mostly bullish, suggesting the key resistance at 1.5850 may soon give in. Either way, a breach of any of these levels is going to define mid-term Pound trend.
Traders' Sentiment
The sentiment towards the Sterling is slightly more bullish than bearish, being that 56% of open positions are long. As for the pending orders, 58% of commands placed 100 pips around the spot are to sell the currency against the Greenback.
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