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"The pound remains on the back foot despite a less dovish than expected inflation report and an until now softer dollar."
- Citi (based on Business Recorder)
Pair's Outlook
On Tuesday demand at the immediate support cluster triggered a buying spree of the Cable, causing the pair to recover and stabilise just above the closest resistance level. Technical indicators now shifted to the bullish side, suggesting the bullish momentum is to be prolonged today. The Sterling has the potential to reach the 1.46 major level and encounter resistance in face of the Bollinger band around 1.4618. However, risks of the GBP/USD retesting the support trend-line circa 1.4350 also persist, depending on Yellen's testimony later today.
Traders' Sentiment
Confidence in the Pound keeps rising, with 57% of all positions now being long, whereas the share of buy orders surged from 44 to 49%.
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