© Dukascopy Bank SA
"With the benefit of hindsight, it seems that either monetary policy should have been tightened more aggressively or macro prudential measures should have been implemented in order to tighten credit conditions in the overheated housing sector."
- William Dudley, New York Fed President (based on MarketWatch)
Pair's Outlook
The GBP/USD cross is strongly supported by the 55, 100 and 200-period SMAs around the 1.57 level. For now it is still unclear whether it will be enough to push the pair above the down-trend's resistance line that is located around 1.5741. However, if the previously mentioned supports fail to keep the pair afloat then the pair most likely will test this years low once again, since the daily and weekly technicals are bearish.
Traders' Sentiment
The sentiment towards GBP/USD improved by 8% and a majority of the market participants are still expecting the British currency to outperform the Greenback, namely 63% of them. In the meantime, the share of sell orders slipped from 74% to 67%.
© Dukascopy Bank SA