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At the beginning of the week, the pair showed some positive movements following a Friday's data-heavy session featuring the nonfarm payrolls report for February. After the announcement, the pound snapped its sharp five-day rebound which had sent the cable almost 400 pips higher from the seven-year low at 1.3836 seen on February 29. Meanwhile, the macro calendar stayed relatively quiet in both countries, unveiling the Federal Reserve's unexpectedly downbeat Labor Market Condition Index. Ath the end of the observed period, the British sterling sharply rose, amid the improved sentiment following the Frankfurt storm induced by unexpected comments by European Central Bank President Mario Draghi regarding no further cuts at Thursday's press conference. Moreover, the risk-on mood on worldwide financial markets coupled with a better-than-expected UK trade deficit figure in the final trading day of the week.
However, traders are undecided regarding pair's perspective. Probably, the pair will continue moving sideways this week, as consensus forecast stands for 1.423, just 3 pips below the daily pivot. Additionally, almost equal number of participants is having a bullish and bearish outlook on the pair, while market sentiment is slightly bearish.
Still, some of the traders are seeing a period of a upside correction. According to megajorko, "The cable has took full power and has rebound from the fresh lows we saw few weeks ago. The bullish momentum is in its power and few things can stop the advance. However, one of the most important influential factor is the oil price, since GBP is strongly connected to it." An abundance of fundamental data both from the UK and the world's largest economy can add more liquidity into markets.
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