© Dukascopy Bank SA
- BK Asset Management (based on CNBC)
Pair's Outlook
The Cable appears to have entered a consolidation period, as it keeps gravitating towards the 200-day SMA. This trend is yet to be confirmed by the Sterling's possible decline towards the monthly PP around 1.53 today. A correction is likely to take place, but a number of fundamentals could strengthen the Pound over the day, thus, extending the GBP/USD's rally. Immediate resistance lies above 1.54, represented by the weekly R1 and 55-day SMA. A rebound is possible due to the pair being supported by a strong cluster and a weaker US Dollar on increased Fed rate hike uncertainty.
Traders' Sentiment
More than a half (61%) of traders retain a positive outlook towards the Cable, while 57% of orders are to buy the GBP (down from 60%).
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