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"Given the latest upside breaks the British Pound escaped the looming setback risks and opened further upside potential."
- JPMorgan (based on FX Street)
Pair's Outlook
After a two-week rally the Cable was pressured down by a lot better-than-expected US fundamentals yesterday. As a result, the GBP/USD dropped to the 1.58 major level, but stabilised at 1.5827. Nevertheless, we still assume the Sterling will outperform the US Dollar today, with the Bollinger band retaining its role as a ceiling around 1.60. Although risks of slumping further exist, the weekly PP has already prevented the British Pound from falling in the early hours, providing the Cable with a chance of surging again.
Traders' Sentiment
Market sentiment weakened again, as only 47% of traders now hold long positions. Meanwhile, the share of purchase orders edged up from 47 to 58%.
© Dukascopy Bank SA