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"The market is positioned close to its limit in terms of shorting sterling, so for the pound to move lower it needs fresh sell factors."
- Mizuho Corporate Bank Ltd. (based on Bloomberg)
Pair's Outlook
Despite closing beneath 1.5226, GBP/USD keeps on gravitating towards it, refusing to gain bearish impetus after breaching this strong support level. Ideally the currency pair would aim for 1.4944/38 initially, then hunt for some of the lower levels, including 1.4866 and 1.4793. The recent price action, however, begs to differ, as the risk of a jump to 1.5406/1.5372 is increasing.
Traders' Sentiment
The Sterling remains one of the most popular currencies in the market, being bought in 68% of trades. As for the Cable, there attractiveness of the British Pound is even more distinct, since 71% of positions are long on it. In the meantime, the ratio between long and short positions is 34% to 66% respectively.
© Dukascopy Bank SA