© Dukascopy Bank SA
"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 Reuters)
Pair's Outlook
After a sharp fall in the beginning of a week, GBP/USD pair stabilises around the 55-day SMA at a 1.6138 level. The price tests the SMA from beneath and if this level holds, it might be a strong signal to sell. While the pair fluctuates within a 1.6132/52 channel, any brake out of it has to be confirmed by a retest of a boundary, as a current period shows low volatility and due to that—a lot of fake signals.
Traders' Sentiment
During Christmas and the New Year's Eve, proportion between buy and sell positions stays unchanged, as 29% of traders have long positions and 71% have short positions. Pending orders segment is slightly bearish, as 44% of orders are buy and 56% are sell.
© Dukascopy Bank SA