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"If sterling breaks through $1.63 there is definitely potential for more upside, but it is more likely to test support at $1.6090"
- Investec (based on Reuters)
Pair's Outlook
GBP/USD refused to submit to a downtrend resistance line and has just soared beyond 1.6233. Even though the price has not yet closed above it, there is little chance the pair will return within the channel, as short-term technical indicators are bullish. The only obstacle that separates the cable from long-term advancement lies at 1.6308—the highest value in more than two and a half years.
Traders' Sentiment
The share of long positions on GBP/USD has fallen even further, as conviction of the market participants in the weaker Sterling is increasing. Presently the ratio between bulls and bears is 26% to 74%, respectively. Orders give mixed signals, since the distribution among buy and sell orders is 48% to 52%.
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