© Dukascopy Bank SA
"In order to make a case for rising or falling rate expectations from the current levels we need some serious big improvement in data or a big deterioration. Unless that happens, rate expectations will stay flat for now, and hence we won't get any big currency moves for sterling right now."
- Credit Agricole (based on Reuters)
Pair's Outlook
Because of an upside surprise in fundamentals GBP/USD violated the accelerated down-trend before reaching the lower boundary of a bearish channel it has been forming since the beginning of the year. However, the pattern itself seems to remain intact, as the pair did not manage to rally through the resistance at 1.5180, meaning the near-term outlook for the Sterling is strongly bearish. The nearest significant support is thus at 1.51.
Traders' Sentiment
There are now more bears in the SWFX market than there are bulls, though for now the gap is insignificant, merely four percentage points. The sell orders are in a majority as well, constituting 55% of the total number of commands set 100 pips from the spot.
© Dukascopy Bank SA