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"People are still very skeptical about the Fed raising rates this year."
- Macquarie Ltd (based on Reuters)
Pair's Outlook
The US currency failed to outperform the Sterling, amid poor trade data and rising concerns over a 2015 Fed rate hike. As a result, the Cable tested the weekly R1 for the second time, breaching the immediate resistance and settling above the major level of 1.52. The bullish momentum is expected to dominate today as well, but with the upside volatility limited by a strong cluster around 1.53 psychological level. However, weak UK fundamentals could push the GBP/USD back under 1.52, as technical studies retain bearish signs.
Traders' Sentiment
Bullish SWFX traders' sentiment returned to its Monday's level of 64%. Meanwhile, buy orders take up the majority (59%) of the market again, compared to 48% yesterday.
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