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"Higher real yields in the US would be very bearish for GBP/USD, while falling UK real yields in isolation would be pretty negative too."
- TD Securities (based on PoundSterlingLive)
Pair's Outlook
The Sterling remained relatively unchanged against the US Dollar on Monday, unable to pierce the 20-day SMA resistance. However, due to a slight decline yesterday, the monthly PP was breached, which is now bolstering the 20-day SMA, creating an even stronger resistance area just above the opening price. At the same time, the 100-day SMA is the nearest support, which appears to be keeping the GBP/USD pair from sustaining sharper losses, for the moment at least. Technical studies also retain their bullish signals, but a positive development is doubtful, unless UK fundamentals surprise with stronger data today.
Traders' Sentiment
There are 57% of traders holding long positions, compared to 58% on Monday. The share of sell orders barely changed as well, having risen from 54 to 55% over the past 24 hours.
© Dukascopy Bank SA