© Dukascopy Bank SA
"The pound was underperforming anyway due to the recent BOE alarm bells. There are pound-specific sell forces in play in the form of verbal intervention, potential rate cuts and further QE, and the Fed added fuel to the fire. A move to $1.50 is our current target."
- Mizuho Corporate Bank Ltd. (based on Bloomberg)
Pair's Outlook
A major area at 1.5264/21, consisting of several supports, has survived the initial attack of the price. Nevertheless, there is an increased chance that there are going to be repeated attempts of the bears to erode it. Accordingly, the rallies in the short run are to be capped by the resistance at 1.5356. Technical indicators continue suggesting absence of any specific action by the pair.
Traders' Sentiment
The ratio of bulls to bears on the Cable has remained perfectly unchanged—71% to 29% respectively, as the currency pair has stalled. In the meantime the difference between the buy and sell orders is increasing, reaching 18%, with the latter ones being in majority.
© Dukascopy Bank SA