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- BNP Paribas (based on PoundSterlingLive)
Pair's Outlook
A strong reading of the UK Manufacturing PMI yesterday allowed the Sterling to take the upper hand versus the US Dollar, with the exchange rate reaching the tough resistance area 1.33. However, the Pound was unable to climb over this major level, but technical indicators suggest that another rally could push the Cable even higher today. The main gauge of such a development would be weak US NFP results later today, with the pair seen as high as 1.34, where the weekly R2 and the monthly R1 are located. Nevertheless, the GBP/USD pair could also retreat back to 1.32 should the NFP come out better than expected.
Traders' Sentiment
Bearish market sentiment returned to its previous Friday's level of 58% (previously 52%). At the same time, the share of purchase orders lost two percentage points. The orders now take up 49% of the market.
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