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– Standard Bank Group Ltd (based on Bloomberg)
Pair's Outlook
Poor US fundamental data and persistent weakness caused by the FOMC Minutes continued to weigh pressure on the American Dollar, allowing the British Pound to take the upper hand yesterday. As a result, the Cable surged nearly 100 pips, meeting resistance only near the 1.2420 mark. Although slightly weaker, but the same supply area keeps providing strong resistance, which could turn the tide back into the Greenback's favour. Technical indicators support this outlook, but another set of weak fundamentals could still provide the GBP/USD pair with sufficient impetus for another leg up.
Traders' Sentiment
There are 68% of traders with a positive outlook towards the Sterling today, compared to 61% yesterday. Sell orders keep rising, now taking up 58% of the market (previously 53%).
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