© Dukascopy Bank SA
In course of the August 25-29 trading week, we could observe the Cable going slightly to the north, however, no major maneuvers were seen during the mentioned time period. The mild positive sentiment of Dukascopy traders was affirmed by actual movement of the currency cross, as 56.2% of all the votes were bullish concerning the last week's development. The average expectation for Friday was located around 1.6610, while the real closing point was reached just a bit to the south of the this level. Among important fundamentals last week, an increase in the U.S. consumer confidence and the Richmond Manufacturing Index pushed the pair a bit to the downside on Tuesday; however, the pair managed to rebound fast enough, even despite the strong U.S. GDP advance and rising home sales.
Along with the single European currency area, Britain is waiting for the Bank of England's decision on interest rates this Thursday, which can considerably influence the performance of the GBP/USD currency cross. Taking into account the recent split vote from BoE meeting minutes, Dukascopy traders are not sure about the development of the pair, as the average forecast for September 5 is located around the closing level of last Friday, namely at 1.6610/15. Traders' sentiment, in turn, worsened marginally, as 55.6% of votes are long at the moment. The neutral outlook is also suggested by Guru, as he thinks that "GBP/USD is mildly bearish, it may move sideways for the coming week. If it breaks 1.6530, it will be heading to 1.6285. while a bounce back to 1.6735 is in the papers…", while the similarity of EUR/USD and GBP/USD this week's movements is seen by Drift: "Almost the same technical pattern with the EUR/USD happened to the GBP/USD."
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