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"Given disastrous [U.S.] ISM and the likelihood of further asset purchases on Thursday, we expect further short-term downside for sterling/dollar in the coming days and view any rally as a selling opportunity"
- Commerzbank (based on Reuters)
Pair's Outlook
Yet another attempt of the Cable proved to be unsuccessful in the face of an impenetrable for now resistance area at 1.5734/70. Higher levels lie at 1.5823 and at 1.5855/98, but are far from the danger of being challenged at the moment. The initial support may and is very much likely to be found at 1.5632/1.5583, while subsequent zones are at 1.5536/1.5493 and 1.5395/89.
Traders' Sentiment
The difference between bearish and bullish traders has narrowed to 12%, but nonetheless the advantage of short positions over the long ones is still notable. Orders placed on GBP/USD, on the other hand, do not reveal preferences of the market, as buy and sell orders constitute nearly the same portions of the total amount of orders - 49% and 51%, respectively.
© Dukascopy Bank SA