GBP/USD depreciates along the lower Bollinger line

GBP/USD depreciates along the lower Bollinger line

'With the Bank of England forecasting a 'slow' recovery policy makers will provide more stimulus to shore up growth if needed.' - Mervyn King, Bank of England governor (Based on Bloomberg)

Pair's Outlook

The Cable demonstrates extremely bearish sentiments, as the pair depreciates for a second consecutive week. The price gradually loses its value and moves along the lower Bollinger line. The next possible support level for the Cable is around a 1.5746 level, where the 261% Fibonacci, the monthly S3 and weekly S1 are located. It is very likely that this level will stop the depreciation, as the RSI already has a value of 28 and is in an oversold area.

Traders' Sentiment

Traders in the Cable's pair are bullish and bet for a reverse and appreciation in the near future, since 60% of positions are buy and 40% are sell. Pending orders' segment is bearish, as 39% of placed orders are for a long position and 61% are for a short position