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"April's MPC minutes (released on Wednesday) showed that the MPC has become slightly less concerned by the downside risks to the inflation outlook. Nonetheless we think there will be little pressure on it to raise rates this year."
- Capital Economics (based on WBP Online)
Pair's Outlook
The Cable exceeded expectations, as it edged up a lot higher at the end of last week. The initial resistance was easily pierced, as well as the next cluster at 1.5156. Ultimately, the GBP/USD pair stabilised at 1.5186. Today, the Sterling is likely to extends its rally and overcome the 1.52 level, while immediate resistance rests at 1.5234, represented by the Bollinger band. Nonetheless, technical indicators keep showing mixed signs.
Traders' Sentiment
Market sentiment of SWFX traders remains bearish, with 41% of all positions being long. The portion of buy commands, however, added eight percentage points. The orders now account for 53% of the market.
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