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"We doubt that it [slower inflation in the U.K.] would have lasting impact on the pound sentiment, which received a huge boost in the wake of the Mansion House speech."
- Citi (based on MarketWatch)
Pair's Outlook
GBP/USD did refresh the 2009 highs yesterday, but its prospects are dim, since the pair appears to be indecisive in the presence of 1.70. Nevertheless, most of the indicators imply that the Pound is going to succeed eventually, which would pave the way towards the upper boundary of the bullish channel at 1.7320. Alternatively, the Cable may again seek support from the lower boundary of the channel at 1.6749, also the current location of the 100-day SMA.
Traders' Sentiment
There are still not notable changes neither in the sentiment of the SWFX market towards GBP/USD (26% of positions are long and 74% are short) nor in the distribution between the buy (41%) and sell (59%) orders.
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