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"The higher the pound moves on improving risk sentiment, the more likely "Brexit" developments will begin to weigh on sentiment again. So we see limited upside for the pound from here."
- Bank of Tokyo-Mitsubishi (based on Business Recorder)
Pair's Outlook
Despite weak UK data, the GBP/USD currency pair managed to recover from its daily low and end the week with five consecutive rallies. If the Sterling succeeds in preserving its current bullish trend, the exchange rate could reach the 1.49 mark within two months; however, technical studies in all timeframes suggest otherwise. Meanwhile, the closest resistance is located only around 1.4415, represented by the 55-day SMA, the weekly and the monthly R1s. The 20-day SMA, on the other hand, is supporting the Cable just below the opening price, while another strong cluster is located around 1.4125, which should limit the dips, as price is expected to drop lower over the day.
Traders' Sentiment
Today 56% of all open positions are long (previously 52%), whereas the share of purchase orders increased from 37 to 52% over the weekend.
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