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"The pound has been trading on a softer footing in the near term. Pushed-back expectations of a BoE rate increases have removed one key support factor for the pound in the near term, thus leaving it more vulnerable to the downside for now."
- Bank of Tokyo-Mitsubishi UFJ Ltd. (based on Bloomberg)
Pair's Outlook
The British Pound edged lower against the US Dollar on Monday, with the immediate support in face of the weekly PP limiting the losses. However, the weekly PP is now providing resistance and weighing on the GBP/USD. The Sterling could decline towards the support cluster around 1.4960, which would mean an almost complete erasure of last Thursday's gains. Nevertheless, a positive surprise in the UK fundamentals could help the Cable recover and retake the 1.51 major level, with the second target resting at 1.5138.
Traders' Sentiment
There are significantly more bulls today (68%), compared to 59% on Monday. At the same time, the share of orders to acquire the Pound added 16 percentage points, now taking up 74% of the market.
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