GBP/USD depressed below monthly S2

GBP/USD depressed below monthly S2

'The longer the bad weather goes on, the more activity it will bleed away and unfortunately the greater the probability of a triple dip. This is still just part of the zig zag and the broad underlying picture is one of no growth.' - Nomura International Plc. (based on Bloomberg)

Pair's Outlook

A recent sell-off pushed pair below its 200-day SMA and at the moment monthly S2 at 1.5878 is keeping it away from recovery. Although market is becoming more bullish towards the cable daily technicals suggests we should see further depreciation until the pair will consolidate, most likely somewhere in 1.575 area.

Traders' Sentiment

Market participants continuing to become more bullish towards the pair-51% of all open positions on the pair are long. It is likely that such trend will continue for some time in the future as majority of pending orders, 57% to be exact, are to go long as well.