GBP/USD gravitates towards weekly S1
"With commodity prices coming under renewed downward pressure, the Bank of England may well find it difficult to hike rates in 2016. Put simply it looks to us as if 2016 will be the year that sterling finally loses its shine."
- Bank of New York Mellon (based on Business Recorder)
Pair's Outlook
The Sterling made its way closer to the Nov low yesterday, by falling towards the major level of 1.51 against the US Dollar. The Cable appears to be glued to the weekly S1 level and refuses to drop below 1.5075 this week, suggesting that the exchange rate could edge approximately 25 pips higher today. Although technical studies are bolstering this outcome with their bullish signals, the downslide might be extended with the weekly S2 and the Nov low acting as the nearest support around 1.5035.
Traders' Sentiment
The outlook towards the GBP/USD improved again today, with 54% of all positions being long (previously 53%). The share of sell orders barely changed over the day, taking up 57% of the market.
- Bank of New York Mellon (based on Business Recorder)
Pair's Outlook
The Sterling made its way closer to the Nov low yesterday, by falling towards the major level of 1.51 against the US Dollar. The Cable appears to be glued to the weekly S1 level and refuses to drop below 1.5075 this week, suggesting that the exchange rate could edge approximately 25 pips higher today. Although technical studies are bolstering this outcome with their bullish signals, the downslide might be extended with the weekly S2 and the Nov low acting as the nearest support around 1.5035.
Traders' Sentiment
The outlook towards the GBP/USD improved again today, with 54% of all positions being long (previously 53%). The share of sell orders barely changed over the day, taking up 57% of the market.