© Dukascopy Bank SA
"The data of late - retail sales and unemployment - has been impressive, despite concerns about growth and at the margins this is helping sterling"
- UBS (based on Reuters)
Pair's Outlook
GBP/USD rapidly advanced towards 1.5713/91, but lacked momentum in order to penetrate it and then target subsequent levels at 1.5824 and 1.5883. Accordingly, the pair is currently falling and is likely to move at an accelerated pace in the direction of 1.5658/08, the support zone which is reinforced by 1.5573, but is not viewed as strong enough to halt extension of the dip.
Traders' Sentiment
Distribution of long and short positions remains perfectly the same as in the previous report, being 37% to 63%, accordingly, implying that traders favour debasement of the British Pound in future. However, orders placed on the currency pair do not support this view, since buy and sell orders constitute nearly equal proportions of the total amount - 48% and 52%, respectively.
© Dukascopy Bank SA