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"We see more upside potential for sterling and have revised up our year-end forecast of GBP/USD to 1.52 from 1.47 and GBP/EUR to 1.36 from 1.31."
- Lloyds Bank Commercial (based on PoundSterlingLive)
Pair's Outlook
The British Pound rebounded from the 1.44 mark on Tuesday, having climbed over the immediate resistance cluster. The same cluster is now acting as the immediate support, which should provide sufficient demand for another rally today. Technical indicators are mostly giving signals to buy the Sterling, bolstering the probability of the bullish outcome. In this case the Cable is likely to retake the 1.45 psychological level and might even put the nearest resistance at 1.4538, namely the weekly PP, to the test. However, a lot depends on the UK Manufacturing Production data, which could prolong the pair's previous week's bearish trend.
Traders' Sentiment
Market sentiment is somewhat bullish, with 55% of traders being long the Pound. The share of buy orders, however, surged from 45 to 54%.
© Dukascopy Bank SA