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"Meeting minutes are going to be very important as is the Inflation Report ... it seems sterling/dollar is probably going to remain rangebound until the release of those reports"
- Forex.com (based on Reuters)
Pair's Outlook
The cable preserves its upside potential and appears to be aiming for 1.62 in the medium term. At the moment the currency pair is confidently approaching a dense resistance area composed of a monthly S1, the 100-day SMA and several other studies. A close above 1.5932/67 would thus imply continuation of an up-trend, while a failure to breach it is likely to send the price back to the 200-day SMA that currently stands at 1.5857/43.
Traders' Sentiment
The share of long positions in the market has increased up to 59%, as traders are becoming increasingly convinced that the Sterling is going to appreciate relatively to the U.S. Dollar. On the other hand, the amount of pending sell orders (46%) exceeds buy orders (54%) and thus gives a contrary signal.
© Dukascopy Bank SA