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"The pound weakened a bit after the data. I don't think the market liked the fact that the current-account deficit worsened."
- Peter Kinsella, Commerzbank (based on Bloomberg)
Pair's Outlook
In the end the monthly S1 managed to push the Cable away from 1.55. Considering there are no notable resistances nearby, the rally is well-positioned to develop further, until it reaches a down-trend at 1.565. There the currency will be expected to come under significant pressure, and this is likely to result in a test of the falling support line at 1.54. But a bullish break-out should not be ruled out—GBP/USD is approaching the apex of the falling wedge pattern.
Traders' Sentiment
The gap between the amounts of long and short positions is more or less the same as on Wednesday, namely 16 percentage points. The difference between the buy and sell orders, on the other hand, has grown from 20 to as many as 34 percentage points.
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