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"The FOMC has helped higher-beta currencies across the board. The market also feels a bit more positive about the euro zone so I think cable can hold these levels"
- Geoffrey Yu, UBS (based on Reuters)
Pair's Outlook
Following a starkly rally, GBP/USD is in a bearish correction, which should not extend beyond supports either at 1.5849 or at 1.5824/1.5796. Moreover, as long as 1.5763/41 remains intact, near-term positive outlook will be preserved. The initial resistance is located far ahead, at 1.5983, and guards a major downtrend resistance at 1.6118.
Traders' Sentiment
Stance of traders towards the cable is unchanged since the last report and is thus still bearish to a significant extent, as only 26% of positions are long, leaving 74% of the market to those, who expect the Sterling to lose in value. On the other hand, 55% of orders placed on the pair are buy orders and 45% are sell orders.
© Dukascopy Bank SA