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- Morgan Stanley (based on PoundSterlingLive)
Pair's Outlook
Amid weak US GDP figures the Cable was able to edge higher on Friday, completely erasing all intraweek losses. The GBP/USD pair is expected to continue climbing up today, despite technical indicators retaining bearish signals both in the daily and the weekly timeframes. The pair is now supported by a strong cluster around 1.3170, represented by the 20-day SMA, the weekly and the monthly PPs, which is likely to prompt the exchange rate to eventually retake the 1.33 major level. However, we should not rule out the possibility of the Pound sustaining a minor loss of approximately 30 pips.
Traders' Sentiment
Bears keep gaining numbers, as 58% of all open positions are short (previously 56%). At the same time, the number of orders to sell the Sterling inched up from 53 to 55%.
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