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– JP Morgan (based on PoundSterlingLive)
Pair's Outlook
The Pound suffered once again yesterday, falling deeper down against the US Dollar. The relatively sharp bearish momentum has been prevailing for nearly two weeks in a row now when the Cable retested the down-trend at 1.2570, and is expected to remain in the markets today as well. The GBP/USD pair could then fall towards 1.2119, namely the monthly S2, even though a possibility of bulls taking over still exists, as technical studies retain mixed signals. Moreover, a disappointment in today's ADP Employment Change reading is likely to weaken the US Dollar, which would allow the Sterling to take the opportunity and recover some of previous two-week losses.
Traders' Sentiment
Traders' sentiment remains bullish at 62%, but the portion of purchase orders declined over the day, namely from 60 to 54%.
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