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"With dovish comments from BoE Governor Mark Carney last week, this fall in inflation will provide the monetary policy committee with even more reason to hold out for first-quarter 2015 before tightening monetary policy."
- UKForex (based on Reuters)
Pair's Outlook
After being fairly quiet on Monday the Sterling effortlessly pierced a number of significant supports yesterday, including the May low and monthly S2 at 1.67 and 1.6650 respectively. Since there are no more important demand zones nearby, the price is expected to move even further South, regardless of the ‘buy' signals on the monthly time-frame. Once the monthly S3 at 1.6450 is broken, the 2014 low at 1.6250 is likely to be targeted next.
Traders' Sentiment
Traders take advantage of lower prices and mostly bet on a reversal—64% of open positions are long. Concerning the orders, a majority (59%) of them is set to purchase the British Pound against the Greenback.
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