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"The market clearly has sterling in the cross hairs. King and Fisher have joined Miles in voting for more quantitative easing and the market has thumped sterling on the back of that."
- National Australia Bank Ltd. (based on Bloomberg)
Pair's Outlook
Even though the Cable has approached the major support area at 1.5264/40, for now there are no indications that the bearish impetus has been fully negated, calling into question whether there is going to be a change of direction. In case the bears remain in control and push through 1.5264/40, they are likely to target 1.5008 initially, then 1.4853. Technical studies are unchanged and are still giving mixed signals.
Traders' Sentiment
The quantity of bullish towards the currency pair market participants has expanded to 71%, as more and more traders foresee a reversal, whereas 29% of the positions remain short. The distribution between the buy and sell orders is stable—43% to 57% accordingly.
© Dukascopy Bank SA