© Dukascopy Bank SA
"Expectations for dovishness from the Bank of England could see the pound underperform other risk correlated currencies, especially if the jobs data isn't strong."
- Josh O' Byrne, Citi (based on Reuters)
Pair's Outlook
Bullishness of the Cable that we have been observing since the beginning of March proved to be insufficient to carry the price over the monthly R1. The currency pair bounced off of 1.4446 and even closed below the 55-day SMA. The target is now the monthly pivot point at 1.4141, where the bulls will have a good opportunity to recuperate and launch a yet another attack on the weekly R1. If they are successful, the Sterling will be expected to appreciate to 1.47 dollars over the next several weeks.
Traders' Sentiment
There are a lot more bulls today than yesterday. The percentage of long positions surged from 55 to 66%, meaning the Pound is now overbought. As for the orders, the share of buy ones jumped from 51 to 61%.
© Dukascopy Bank SA