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- Societe Generale (based on PoundSterlingLive)
Pair's Outlook
A rather weak reading of ADP data yesterday caused the GBP/USD currency pair to erase all intraday losses and even inch slightly higher. As a result, the Cable managed to remain above the 1.27 major level and is now expected to edge higher for the second day. Even though technical indicators are unable to confirm the possibility of a rally, USD-pairs tend to turn in favour of other currencies ahead of NFP data, rather than the US Dollar itself. On the other hand, the Cable has little room for further appreciation, being that the nearest resistance rests only 30 pips above today's opening price. Consequently, risks of the exchange rate falling under 1.27 also persist.
Traders' Sentiment
Bulls now take up 65% of the market (previously 64%), while the share of buy orders returned to its Monday's level of 52%.
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