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"With the Bank of England forecasting a "slow" recovery policy makers will provide more stimulus to shore up growth if needed."
- Mervyn King, Bank of England governor (Based on Bloomberg)
Pair's Outlook
The Cable demonstrates extremely bearish sentiments, as the pair depreciates for a second consecutive week. The price gradually loses its value and moves along the lower Bollinger line. The next possible support level for the Cable is around a 1.5746 level, where the 261% Fibonacci, the monthly S3 and weekly S1 are located. It is very likely that this level will stop the depreciation, as the RSI already has a value of 28 and is in an oversold area.
Traders' Sentiment
Traders in the Cable's pair are bullish and bet for a reverse and appreciation in the near future, since 60% of positions are buy and 40% are sell. Pending orders' segment is bearish, as 39% of placed orders are for a long position and 61% are for a short position.
© Dukascopy Bank SA