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"After benefiting from dollar weakness across the currency markets last week, it looks like the correction in sterling/dollar might have concluded."
- FXTM (based on Business Recorder)
Pair's Outlook
The British currency extended its decline against the US Dollar on Monday, but with trade closing above the expected 1.44 level. The Cable has been trading in a bullish trend for three weeks straight, although the up-trend might be put to the test today. Nonetheless, the monthly PP and the 20-day SMA are bolstering the support line and should limit the losses around 1.4340. Meanwhile, the role of the closest resistance was taken by the weekly PP at 1.4467, but the GBP/USD weakness remains the anticipated outcome.
Traders' Sentiment
Bulls and bears broke out of the equilibrium, with 54% of all open positions now being long and the remaining 46% - short. At the same time, the number of sell orders increased from 43 to 56%.
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