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"Overall the economy is steady and calm giving the Bank of England opportunity to continue to monitor and comment without requiring any real action."
- HiFX (based on Business Recorder)
Pair's Outlook
Due to some disappointments in UK's fundamentals yesterday, the Cable failed at reaching its target of 1.5250, but managed to breach the immediate resistance, nonetheless. Another rally today is possible, but with gains limited by the 1.53 major level, as a strong supply area lies just beyond it. At the same time, risks of edging lower persist, as technical studies both in the daily and the weekly timeframes retain their bearish signals. Dips should be limited by the weekly PP, 23.60% Fibo and the monthly S1, unless the US data provides enough impetus for the exchange rate to return lower.
Traders' Sentiment
Market sentiment worsened again, now with 61% of all positions being short; while the share of buy orders improved from 36 to 47%.
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