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    GBP/USD stable above 1.56; risks of plunging remain

    © Dukascopy Bank SA
    "A good number here [UK GDP for Q2] raises expectations about next week's Bank of England rate meeting and the prospect of the first dissent on the interest rate consensus seen since the beginning of the year." 
    - CMC Markets (based on WBP Online) 


    Pair's Outlook 
    The Cable declined on Wednesday less than expected, as the pair closed trade in front of the immediate support, namely the monthly PP. The Sterling is expected to rebound today and erase last week's losses. The weekly R1 is still the nearest resistance; however, we should not rule out the possibility of a slump towards the support cluster around 1.5545 if the US fundamentals show signs of improvement and, thus, boost the US currency. Nonetheless, the GBP/USD pair's overall bullish trend remains intact and the technical studies support that. 

    Traders' Sentiment 
    Market sentiment weakened again, as 48% of all positions are now long. Meanwhile, the share of buy orders slid from 55 to 44%.
    © Dukascopy Bank SA

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