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"We are seeing a recovery of risk appetite in financial markets across the board including foreign exchange"
- Commerzbank AG (based on Bloomberg)
Pair's Outlook
The cable has postponed the recovery and fell below 1.5796/1.5824, but remained unable to push through a formidable level at 1.5777/47 formed by 200 day SMA and an uptrend support. Accordingly, GBP/USD retains potential to advance and attain a major downtrend resistance at 1.6098, even though afterwards the currency pair is anticipated to decline.
Traders' Sentiment
Despite a slight increase of the share of bullish market participants, the general sentiment remains negative towards GBP/USD, being that only 33% of all the positions opened are long, while short ones constitute 67% of the market. As for the orders, 56% are to buy the Sterling and 44% are to sell it against the greenback.
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