GBP/USD starts the week with mild gains

GBP/USD starts the week with mild gains

'If a bank flouts the rules, the regulator and the Treasury will have the power to break it up altogether - full separation, not just a ring fence. In the jargon, we will 'electrify the ring fence'.' - Chancellor George Osborne (based on Reuters)

Pair's Outlook

Pair ended last week with a 200 pip dip to 1.57 and started this week with some gains, but with the current pace it might take a week or two to recover mentioned losses. Technical indicators suggest that significant downside risk is still present and we might see additional dip, most likely to 1.5623. Longer horizon technical indicators however suggest pair might be trading for some time in the near future

Traders' Sentiment

After the weekend 59% of positions are remaining long and 41% short. However, distribution of pending changed-58% of them are to go short.