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"More and more, we see a certain level of discomfort among the Fed regarding the strength of the dollar."
- Toronto-Dominion Bank (based on Bloomberg)
Pair's Outlook
A much stronger-than-anticipated ADP data on Tuesday contributed to the Cable's weakness that day, pushing the pair to retest the 1.46 level. Nonetheless, another decline is likely to be short-lived, as the GBP/USD is now supported by a strong cluster around the 2015 low of 1.4565, represented by the weekly S2; monthly 2 and the Bollinger band. Due to the lack of sufficient downward momentum a breach is not yet expected; however, although a rebound is possible, the weekly S1 at 1.4668 is to provide resistance and prevent the Sterling from climbing too high.
Traders' Sentiment
Today 64% of traders hold long positions (compared to 62% yesterday), while the share of buy orders inched up from 57 to 58%.
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