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"With the US central bank likely on hold for the time being, and absent any strong signals with respect to the timing of the next interest rate increase, we continue to expect only moderate US dollar performance in the near term."
- Wells Fargo Securities (based on Business Recorder)
Pair's Outlook
In the wake of deteriorating US fundamentals yesterday the British currency edged 100 pips higher against the Greenback, as the pair failed to maintain trade above the 1.46 major level. Furthermore, the nine-month resistance line was pierced, but the overall trend remains bearish, as the final down-trend around the 1.49 mark is intact. Technical indicators retain bullish signals, suggesting the Cable is to keep edging higher today. The Bollinger band and the weekly R1 are supporting the pair from below, while the nearest resistance is represented by the monthly R1 and the weekly R2 circa 1.4630, where price is expected to close.
Traders' Sentiment
Bulls and bears broke out of the equilibrium, as 53% of all open positions are now long. Sell orders still take up 55% of the market.
© Dukascopy Bank SA