GBP/USD breaches downtrend line at 1.6040

GBP/USD breaches downtrend line at 1.6040

'The lending data are still very weak, meaning further policy measures from the Bank of England are still very much on the table' - Rabobank (based on Reuters)

Pair's Outlook

Yesterday GBP/USD pair advanced and closed just beneath the downtrend line at 1.6040. Currently, the price is breaching the level and if it settles above it, there is very possible to see an uptrend expansion. Likely resistance levels would be 1.6083/92, where the weekly R1 and monthly PP intersect with the upper Bollinger band line. In case, the price reverses, the 55-day SMA at 1.6022 should be the first support and than the 100-day SMA at 1.5980.

Traders' Sentiment

Disproportion between bulls and bears increases, as today there are 39% of buy positions and 61% of sell positions in the SWFX market. Placed orders segment is slightly more balanced, as 47% of orders are for buy and 53% are for sell positions.