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"The inflation numbers were a little bit of a non-event, MPC minutes and retail sales will be the focus this week, and if the minutes are on the dovish side ... we could see sterling more vulnerable"
- BMO Capital Markets (based on Bloomberg)
Pair's Outlook
GBP/USD pair experienced a volatile trading session yesterday. The price sharply moved above the 1.6253 level, which is the 261.8% Fibo from a down-side wave since 21st of June, but bears in this level were strong enough to pull back the price back to 1.6253 area. Thus we have a candle without a body, but with a huge shadow above it, therefore it might be a signal for a sell position, as the RSI indicator has a value of 74.
Traders' Sentiment
Investors estimate a very negative future for the British Pound, as only 23% of traders have long position and a majority of investors, 77%, have short position. Pending orders segment has a modest expectations to finally see a depreciation of the pair, as 47% of orders are buy and 53% are sell.
© Dukascopy Bank SA