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"This week we have seen appetite to start rebuilding dollar long positions. Markets are feeling more confident that US data is rebounding and the dollar will do well."
- BNP Paribas (based on WBP Online)
Pair's Outlook
The monthly R1 managed to cause the Cable to rebound on Thursday. Gains, however, were limited by the 1.5750 level, just a few pips away from the weekly PP. Nevertheless, the bullish perspective towards the Sterling remains strong, as technical indicators are giving distinctly bullish signals. The immediate resistance is likely to be breached, and the Pound might even stabilse above the 1.58 major level.
Traders' Sentiment
Market sentiment remains unchanged, with bears still taking up 51% of the market. The portion of orders to acquire the British currency, however, increased from 45 to 56%.
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