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"We have strong resistance in the 1.4675 region, with 1.48 above, and technically look for this area to cap for a grind back towards the 1.45 area."
- Lloyds Bank (based on PoundSterlingLive)
Pair's Outlook
The Pound failed to post significant gains against the US Dollar on Thursday, despite the immediate resistance in face of the weekly R2 being retaken. With indicators remaining bearish and the fading bullish momentum, the GBP/USD pair is now expected to undergo a corrective decline. The weekly R2, which now acts as the nearest support, will doubtfully prevent the pair from declining, but the second support area around 1.4480, namely the weekly R1 and the 20-day SMA, is also unlikely to be reached. On the other hand, weak US fundamentals could spark another small Cable buying spree, leading the exchange rate towards around 1.4650.
Traders' Sentiment
There are 59% of traders holding short positions today (previously 53%), whereas the portion of buy orders slid from 66 to 61%.
© Dukascopy Bank SA