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"The inflation numbers were a little bit of a non-event, MPC minutes and retail sales will be the focus this week, and if the minutes are on the dovish side ... we could see sterling more vulnerable."
- BMO Capital Markets (based on Reuters)
Pair's Outlook
After a rather volatile session yesterday which was caused mainly by the fact that pair was trading at 55 and 100-day SMAs intersection point where it received a bearish impetus. Taking in to account readings of technical indicators and current market sentiment it is rather likely we will see a further depreciation of the pair to 1.60 area where we find weekly pivot (S1) and Bollinger band. If we take in to account that next support level is at 1.59 pair might gain momentum and slip to it.
Traders' Sentiment
Similar to most of the other pairs, market participants are rather bullish on the dollar. As a result share of short traders on the pair increased by 4% and they constitute for 66% of all market participants. Distribution of pending orders is staying rather stable—60% versus 40% of long versus short orders.
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