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"GBP dipped to a low of 1.5562 before rebounding quickly. While further down-move is not ruled out, the current price action suggests that this pair is trying to form a short-term base for a recovery."
- UOB Group (based on FX Street)
Pair's Outlook
The GBP/USD remained relatively unchanged on Thursday, as the support cluster at 1.5595 prevented the pair from falling and, thus, caused a slight rebound. As a result, we expect the Cable to advance again today and attempt to climb back up beyond the 1.5650 area, as the Sterling is unlikely to breach the given support. However, the closest resistance is located at the 1.57 psychological level, namely the 20-day SMA. Meanwhile, technical indicators retain bullish signals, bolstering the possibility of the pair rallying.
Traders' Sentiment
Market sentiment keeps strengthening, as 58% of traders now hold long positions, compared to 56% yesterday. The share of orders to acquire the Pound also increased, from 54 to 59%.
© Dukascopy Bank SA