GBP/USD drops insignificantly

Source: Dukascopy Bank SA
© Dukascopy Bank SA
"The bottom line ... is that the current policy of near-zero interest rates does not yet appear to be generating incipient inflationary pressures that could not be addressed in a timely fashion as needed."
- BoE (based on Reuters)


Pair's Outlook

The Cable attempted to slide down on Tuesday. During the trading day the pair reached a low of 1.5403, stopping ahead of the weekly PP, where GBP was expected to find support. Nonetheless, the currency closed the day above the monthly R1. Today GBP/USD is likely to post yet another rally, and it will possibly settle around the weekly R1. The bullish outlook is strengthened by the indicators, but we should be wary of the resistance cluster around 1.5560.

Traders' Sentiment

The sentiment, however, edged down a little, as only 48% of all open positions are long. At the same time the number of orders to acquire the Sterling declined as well, their percentage contracted to 45%.

© Dukascopy Bank SA

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