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"The dollar's gains are driven by actual flows, such as options-related buying. The market is also keeping an eye on the rise in equities."
- Barclays Bank (based on CNBC)
Pair's Outlook
For now the Cable stays on a bullish path and may gain another 70-80 pips before turning around. Despite the long-term technical indicators mostly giving ‘buy' signals, the current upward momentum is likely to be insufficient to break a high concentration of resistances around 1.67. GBP/USD has a better chance of falling back to this year's low at 1.6250. From there the pair may start a decline towards the 2013 low at 1.48.
Traders' Sentiment
The sentiment towards GBP/USD remains bullish, but is notably weaker than yesterday, as the percentage of longs fell from 65% down to 56%. Concerning the orders, there is no difference between the amounts of buy (53%) and sell (47%) ones.
© Dukascopy Bank SA