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"We don't know the precise timing that will start, but what we are emphasizing ... is the path of interest rate adjustments ... is expected to be a gradual set of interest rate increases and to a more limited extent than the past."
- Mark Carney, Bank of England Governor (based on CNBC)
Pair's Outlook
GBP/USD has breached 1.57 level and it is continuing to appreciate, at least that is what it has done for the first three days of the week. The biggest obstacle for further gains is the monthly PP at 1.5755, it stopped the previous rally in the night to today. Nevertheless, the short-term bias remains to be bullish, at least as far as the pair trades above the weekly PP.
Traders' Sentiment
The SWFX traders are getting less convinced that the Pound is going to gain relative to the U.S. Dollar; but overall the bulls are still in a slight majority, as they take up 53% of the market, and this is a advantage over the bears (47%). In the meantime, the share of sell orders rose to 69%.
© Dukascopy Bank SA