© Dukascopy Bank SA
"The BOE Inflation Report on Wednesday (0930 GMT) is expected to be the highlight for the GBP-USD. Background USD vulnerability may prevail in the interim and note that the pair has breached its 200-day MA (1.5618), a first since Aug 2014 when the pair fell through this moving average."
- OCBC Bank (based on FX Street)
Pair's Outlook
On Tuesday, the Sterling appreciated against the US Dollar again and established a new 2015 high. Immediate resistance cluster failed to stop the rally, while the monthly R1 at 1.5712 succeeded, making it the new high. The trading day, however, ended with the Cable stabilising at 1.5665. Technical studies retain bullish signals, suggesting further surge. The closest resistance maintains its position around the monthly R1, while a hike to 1.58 is more likely.
Traders' Sentiment
The percentage of traders with the bullish outlook returned to its Monday's level of 47%, while the number of buy commands added three percentage points. Purchase orders now take up 54% of the market.
© Dukascopy Bank SA