© Dukascopy Bank SA
"While a move below 1.4400 would not be surprising, downward momentum is not strong at this stage and a sustained move below this level appears unlikely."
- UOB (based on FXStreet)
Pair's Outlook
Weak US employment data on Friday was insufficient to cause the GBP/USD currency pair to rebound, but, nonetheless, the monthly PP managed to limit the losses at 1.4417. Technical indicators keep giving bullish signals in the short and medium terms, suggesting that a corrective rally is due. Demand around the 1.44 major level, represented by the monthly PP and the 100-day SMA, is likely to prevent the Cable from falling lower. Immediate resistance lies around 1.4424, namely the 20-day SMA, but gains are expected to stretch beyond the 1.4450 mark.
Traders' Sentiment
Today 58% of all open positions are long, compared to 61% on Friday. At the same time, the number of orders to sell the Sterling increased from 47 to 54%.
© Dukascopy Bank SA