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"Yellen has pretty much decided the dollar's near-term direction, and with U.S. jobs data out of the way each currency will likely move on domestic factors versus the dollar."
- Barclays (based on CNBC)
Pair's Outlook
Last Friday the GBP/USD currency pair declined more than anticipated, having pierced the immediate support cluster and put the short-term up-trend to the test. The Cable is now expected to rebound from the mentioned support line, which is located on top of the 1.42 major level. However, the rally is likely to be short-lived, unless the Sterling manages to climb over a tough supply area around 1.4270, represented by the weekly and the monthly PPs, the 20 and the 55-day SMAs. On the other hand, in case the five-week up-trend fails to cause a rebound, the next target would then be the weekly S1 and the Bollinger band, both located around 1.4075.
Traders' Sentiment
Market sentiment is strongly bullish, as 65% of all open positions are long (previously 59%). The share of buy orders surged from 43 to 55%.
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