© Dukascopy Bank SA
"The prospect of sustained momentum in the UK economy and the gradual firming of underlying inflationary pressure will likely put the decision as to when to start the process of gradual monetary policy normalization into sharper relief around the turn of this year."
- Mark Carney, BoE Governor (based on WBP Online)
Pair's Outlook
As was anticipated, the Cable's decline was limited by the support cluster around 1.5516, despite initial signs of a further rally. The Sterling remains supported by the given cluster and should recover from the Friday's loss, in spite of having opened trade between the 55 and 100-day SMAs. The nearest resistance from here is the 38.20% Fibonacci retracement at 1.5568, while even further to the upside lies the Bollinger band at 1.5612.
Traders' Sentiment
Trader's sentiment remains bullish, as 57% of all positions are still long and 43% are short. At the same time, the gap between the purchase and the sell orders widened; there are significantly more commands to sell the Pound, namely 64%.
© Dukascopy Bank SA