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"We're still waiting for the right moment to buy dollar again. The decline could run a little bit further."
- Credit Suisse Group AG (based on Bloomberg)
Pair's Outlook
A step above the multi-month down-trend on Monday turned out to be a false break-out—the Pound is already trading below 1.61, which was supposed to act as a new floor. Accordingly, GBP/USD is now likely to slide down to 1.5870/50 (2014 and 2013 Q4 lows), as suggested y the daily and weekly technical indicator. However, the price may take a break at 1.5960/30, where the support is implied by the weekly and monthly S1 levels.
Traders' Sentiment
A substantial majority of the SWFX market participants expects the Sterling to outperform the US Dollar—64% of open positions are long. But they are likely to be closed very soon—as many as 70% of all the commands placed are to sell the Pound.
© Dukascopy Bank SA