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- BK Asset Management (based on PoundSterlingLive)
Pair's Outlook
The Cable managed to post more solid gain on Thursday, being driven by a strong reading of the UK Retail Sales data earlier that day. With no significant drivers present today, the GBP/USD currency pair is expected to undergo a corrective decline, despite having opened right on top of the weekly R2 and the monthly PP support cluster. Technical indicators also support the possibility of the bearish outcome. In this case, the nearest area to limit the losses rests around 1.31 psychological level, also bolstered by the 20-day SMA. A drop lower would imply a retreat from a two-week high, with the weekly R1 at 1.3046 being the next target.
Traders' Sentiment
Bulls retreated again, as 56% of traders hold long positions (previously 59%). The portion of buy orders, however, edged up from 39 to 55%.
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