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At the moment of writing the pair was changing hands at 1.6826, with bulls trying to refresh the recent high. Traders, however, does not believe the pair will continue its appreciation, as 62.5% of votes are bearish, while consensus forecast stands at 1.6768– just five pips above the weekly pivot and daily S2. The overall market sentiment is bearish (70%), while pending orders do not point at a clear direction as almost equal percentage of orders is placed to buy and sell the Sterling versus the greenback. Short-,medium– and long-term technicals are pointing at pair's appreciation, while trader carpe believes "This pair is bouncing between 1.6705 (support line) and 1.6835 (resistance line) on 4H chart. At this moment it is marking 1.6835. If bouncing goes on then it will starting its downtrend until lowest support line."
The pair has a potential to be highly volatile in the second part of the week, especially on Friday, when the ONS will publish the U.K. retail sales, while American statistical agencies will unveil the consumer sentiment index. According to traders, retail sales will surprise markets to the downside, while consumer sentiment will be stronger-than-expected.
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