GBP/USD changes direction ahead of 1.6219/1.6196

GBP/USD changes direction ahead of 1.6219/1.6196

'It's still 50/50 as to whether the Fed will announce tapering.' - AMP Capital (based on Reuters)

Pair's Outlook

GBP/USD turned around short of the tough cluster of supports at 1.6219/1.6196 and now appears to be ready to challenge 1.6343/32. If this resistance is overcome, the pair will once again have an opportunity to test the January high, above which the price has recently failed to settle. If, however, these obstacles prove to be impenetrable, there is a high possibility the pair may descend down to the major falling trend-line.

Traders' Sentiment

The tendency of the British Pound to gain popularity was not preserved—once again it has become the least preferred currency in the market. In all of its crosses only 26% imply appreciation of the Sterling. Specifically in GBP/USD 25% of positions are long and 75% are short.