© Dukascopy Bank SA
"It may be appropriate to take into account persistent external deflationary forces arising from the combination of continued foreign low inflation and the protracted effects of sterling's strength on the prices facing UK consumers if those forces were to intensify."
- Mark Carney, BoE Governor (based on WBP Online)
Pair's Outlook
Last Friday, the GBP/USD pair dropped further down for the fourth consecutive day. The Cable plunged through the 2013 low at 1.4808 and ended the trading day at 1.4741 under the S2s support cluster. The loss exceeded expectations, as the pair slid by a total of 138 pips and the downward momentum is expected to last during today as well. Technical indicators are giving bearish signals, bolstering this outcome; thus, the closest support now lies as far as the weekly S1 at 1.4581.
Traders' Sentiment
Market sentiment among SWFX traders remains unchanged, with 54% of traders being long on the Pound. The portion of sell orders is now prevailing, as 65% of all commands are in the range to sell.
© Dukascopy Bank SA