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"Overall the news from the UK is very negative and sterling is still very vulnerable. Any further moves higher in cable will be short-lived and provide renewed selling opportunities"
- Morgan Stanley (based on Reuters)
Pair's Outlook
The Cable has tested formidable resistance at 1.5530/53, proving insufficiency of strength of bullish momentum in order to overcome this level and to challenge some of the higher zones - 1.5583/92 and 1.5646/51. Accordingly, GBP/USD is expected to inch lower, possibly even down to 1.5291/56, however, may be underpinned by 1.5389/85 and commence robust recovery there.
Traders' Sentiment
Being that the current advantage in numbers of bearish over bullish traders is yet neglectable - merely 2%, the overall SWFX market participants' sentiment towards GBP/USD remains mixed. At the same time the ratio between buy and sell orders placed on the Cable is 37% to 63%.
© Dukascopy Bank SA