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"But I think the market is focused on (the fact that) yields keep rising in the U.S., and that's leading to expectations for (nonfarm) payrolls on Friday and more expectations of the Fed and U.S. growth. And what we do see for U.S. growth is consumption remains quite strong."
- Citigroup (based on Reuters)
Pair's Outlook
Even though the Sterling appreciated against the US Dollar, the pair gained only four pips. The tough cluster around 1.5360 helped the Cable to recover from intraday losses and remain afloat. A breach of the given demand area is likely to trigger a sell-off all the way towards the up-trend (currently around 1.5210), in which the GBP/USD has been trading since April. Meanwhile, the 100-day SMA keeps providing immediate resistance around 1.5475, but is unlikely to be reached, as the 55-day SMA is on the edge of breaching the 200-day one, thus, triggering a sharp decline in the medium-term.
Traders' Sentiment
The distribution between bulls and bears is now equal to one, whereas the number of buy orders recovered, rising from 53 to 65%.
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