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"Maybe we could start to flirt with the idea the Fed could tighten again this year, and then we expect a recovery for the dollar."
- SEB (based on Bloomberg)
Pair's Outlook
Although the Sterling was unable to maintain trade near the target area of 1.4450 on Friday, trade still closed with the GBP/USD currency pair retaking the 1.44 major level, also erasing all intraweek losses. Furthermore, the Cable opened with a bullish gap today, inching closer towards the resistance trend-line around the 1.45 mark, therefore, a correction is likely to take place. The Bollinger band is providing immediate resistance circa 1.4478, weighing on the pair, while the nearest support is represented by the 100-day SMA at 1.4428. The exchange rate, however, is expected to fall back towards the 1.44 psychological level.
Traders' Sentiment
Traders' sentiment remains unchanged since Friday, with bulls still taking up 55% of the market.
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