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- National Australia Bank Ltd. (based on Bloomberg)
Pair's Outlook
In the wake of poor UK Services PMI figures the Sterling erased all weekly gains, having fallen back to the 1.31 major level against the US Dollar. Despite being supported by this psychological level, the GBP/USD currency pair is expected to fall lower or at least close near the 1.31 mark again. A strong resistance cluster, represented by the weekly PP and the 20-day SMA, is weighing on the Cable today, while technical indicators are giving bearish signals in the daily timeframe. Meanwhile, the nearest support is located only at 1.3011, namely the weekly S1, unless the 1.31 manages to limit the possible losses.
Traders' Sentiment
There are 55% of all open positions being long today, compared to 58% on Friday. At the same time, the portion of orders to sell the British Pound increased from 53 to 73%.
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