GBP/USD headed towards up-trend support
Pair’s Outlook
None of the nearest supports were able to negate the bearish momentum yesterday. Consequently, we are now left only with 1.6736/26 (55-day SMA and up-trend line) that may prevent further sell-off and thus keep GBP/USD within the boundaries of the bullish channel. Otherwise the Sterling will be expected to depreciate even more. The initial target will then be the 100-day SMA and monthly S1 at 1.6660/31.
Traders’ Sentiment
Contrary to the continuation of the recent trend, namely increase in the portion of longs, the sentiment with respect to GBP/USD worsened instead. The percentage of short positions opened gained from 62% to 66%.
Source: DukascopyBankSA
