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"The key is Jackson Hole this week, we're looking, on balance, for a dovish view from Yellen. That's not particularly good for the dollar, on a broad term basis."
- Standard Chartered (based on Bloomberg)
Pair's Outlook
The Cable, despite opening this week 40 pips above the Friday's close, is not trying to close the upside gap for the time being. Right now the Sterling is trading flat just below the major resistance at 1.6768/39, created by the 200-day SMA and monthly S1. The currency pair is unlikely to rally above this zone—a chance of the May low at 1.67 being breached is presumably higher. However, the long-term technicals continue pointing upwards.
Traders' Sentiment
The SWFX market is slightly less bullish with respect to the British Pound than yesterday, but the longs are nonetheless in a majority, taking up 58% of the total number of positions. Meanwhile, the share of the buy orders increased from 55 to 59%.
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