GBP/USD remains in the uptrend

GBP/USD remains in the uptrend

'While the signs of (economic) recovery that have emerged so far this year are positive, the need for better-balanced growth from net trade and investment remains a necessity.' - EEF (based on Reuters)

Pair's Outlook

Pair started the week with a bounce from the weekly PP/20-day SMA. We are certain that uptrend support (connecting 9th of July and 2nd of August lows) had some impact on this as well. With such pace the pair should test 1.56 before long and we could expect formation of the second top, first being on 21st of August. However, if the pair fails through the uptrend support we could expect it sell off to 55, 100 and 200-day SMAs in a rather moderate pace.

Traders' Sentiment

Despite the persistence of the bulls, bears are holding tight grip on the market. At the moment they hold every 2 out of 3 open positions in the market. Pending orders are clearly in favour for the bears as well (59%).