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    GBP/USD risks breaking under 1.56

    © Dukascopy Bank SA
    "Now that Greece is 'somewhat' resolved, the argument has shifted back to monetary policy divergence between the euro zone, UK and US."
    - Western Union (based on Business Recorder) 

    Pair's Outlook
    The Cable brought no surprises on Thursday, as it failed to pierce the 1.56 major level. Although technical studies keep showing bearish signs, chances of the Sterling outperforming the Buck remain. From below the GBP/USD is still supported by the strong cluster around 1.56, while the 1.5650 resistance, namely the weekly R1, is not as strong. Fundamental expectations also support the possibility of the Pound advancing further, but if surprises occur, we could see the Cable move the opposite direction towards 1.5550.

    Traders' Sentiment
    Bulls and bears broke out of the equilibrium, as 54% of traders now hold long positions. The portion of orders to acquire the British currency returned to its Wednesday's level of 51% (previously 57%).

    © Dukascopy Bank SA

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