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- Torben Kaaber, Saxo Capital Markets (based on Reuters)
Pair's Outlook
None of the nearby resistances proved to be strong enough to prevent GBP/USD from soaring yesterday. Both the 55-day SMA and monthly PP were effortlessly pierced through, leaving a nine-month up-trend open to attack. And while for now the bias remains bearish, because this resistance is still intact, a breach of this level could entail further appreciation of the British Pound, potentially up to the 2009 highs at 1.70.
Traders' Sentiment
Although both GBP and EUR appear to be in demand, the tendencies in the sentiments are quite different. In the first case the bears are enhancing their dominance, in the second, the gap is narrowing, as long positions are getting more popular (from 36% to 40%).
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