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"This short term move higher will primarily be heading for the recently broken flag floor, which now should act as firm resistance at 1.5360."
- SEB (based on PoundSterlingLive)
Pair's Outlook
Poor US GDP data weighed on the Greenback yesterday, helping the Cable recover from Wednesday's losses. The 1.53 major level is now the immediate support, also bolstered by the monthly PP. If breached, the weekly S1 is likely to take action for the last time this week, holding the losses. Meanwhile, the 20 and 200-day SMAs are providing resistance around 1.5340; unless the US fundamentals disappoint again today, gains should be capped by this area. The 55-day SMA is the next target at 1.5380, reinforced by the weekly PP.
Traders' Sentiment
Positions are equally divided between the long and the short ones. At the same time, the number of purchase orders experienced a significant decline, from 74 to 26%.
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