© Dukascopy Bank SA
Despite more or less negative expectations from Dukascopy community members, the Cable continued to advance during the previous trading week. In the first two days, the Pound remained lower, as UK trade deficit dropped to the lowest in more than a year in April and narrowed to 1.2 billion pounds. Nevertheless, on Friday, the GBP/USD currency pair was trading at a strong bullish note at the 1.5558 level.
Currently, the pair is still trading in the bullish channel while on the other hand, some fundamental data may potentially push the pair down this week, including the UK consumer price index and the producer price index on Tuesday. Moreover, the next day, traders could pay attention to the BoE vote hike as well as Fed's interest rate decision. The US will going to round up the week with consumer price data release on Thursday.
Speaking about the next week, Dukascopy traders became much more bullish on this currency pair, as at the moment 55% of votes are set long on the Cable. The average expectation of the Community members went up to around 1.545 from the last week 1.525. However, some traders are strongly bearish on the pair, for example a4yuasin suggests, "The US Dollar Index did very little during the session on Tuesday, as we continue to hang about the 95 handle. With this, we simply do not really want to trade this market, as we think there is very little in the way of trading opportunities. We recognize that the area between the 93 and the 95 level should be supportive, but we do not necessarily see anything to get us excited about buying at the moment either." Another trader, STARLINE expects positive movement and predicts the Sterling to grow up to 1.5800 level during the next week.
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