GBP/USD shoots up to monthly PP

Source: Dukascopy Bank SA
© Dukascopy Bank SA
"The BOE's quarterly inflation report struck a more hawkish tone than anticipated, with the BoE upgrading its labour market forecast considerably."
- DailyFX (based on CNBC)


Pair's Outlook

After touching the support at 1.5898/71, consisting of the weekly and monthly S1 levels, the Pound soared all the way up to the monthly PP at 1.6066/49. And even though this rally and the preceding dip have mostly occurred due to the fundamental reasons, the pivot points seem to have played a notable role in defining the extent of the latest swings.

Traders' Sentiment

More and more traders are beginning to believe that the British Pound will outperform the U.S. Dollar. However, the Sterling-bulls are still in a minority—they take up only 39% (36% yesterday) of the market. Meanwhile, the ratio between the buy and sell orders is respectively 58% to 42%.
© Dukascopy Bank SA

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