© Dukascopy Bank SA
– Rabobank (based on Business Recorder)
Pair's Outlook
The British currency managed to climb over the 1.23 mark for only a short period of time yesterday, ultimately sliding back down and closing trade below 1.22, thus, erasing all this week's gains. In spite of this decline, the Cable still refused to drop below the 1.2150 level, while volatility stretched even lower since Monday. Psychological support here remains strong is likely to cause the GBP/USD to rebound. Consequently, the Sterling has the potential to reclaim the 1.22 mark; however, this implies today's US fundamentals are to disappoint, as they are the main Cable drivers.
Traders' Sentiment
Traders' sentiment returned to its Monday's level of 71%, down from 73% on Thursday. At the same time, the share of sell orders inched up again, namely from 49 to 54%.
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