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"Alongside a better tone to US data in recent days and more neutral dollar positioning, a continued increase in the number of market-implied hikes has room to further support the USD."
- BAML (based on PoundSterlingLive)
Pair's Outlook
The Cable was rather volatile on Monday, but ended the day in the red zone with a 21-pip loss. The weekly PP and the 20-day SMA are now providing immediate resistance for the GBP/USD currency pair, located on top of the 1.45 psychological level. However, according to technical indicators the Sterling is to outperform the Buck, as they are now giving bullish signals in the daily timeframe. The bullish momentum could be sparked by today's UK inflation report, but, nonetheless, the 1.46 mark is expected to remain intact. In case bears prevail, a drop below 1.44 is doubtful, as the three-month up-trend there is likely to provide sufficient support to limit the losses.
Traders' Sentiment
There are 52% of traders now short the Pound, compared to 54% on Monday. The number of sell orders, however, surged from 51 to 55%.
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