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"The market may have got a little ahead of itself in pricing in BoE rate hikes."
- Rabobank (based on Reuters)
Pair's Outlook
After the Cable approached the 200-day SMA, the currency pair received a strong impetus and covered a portion of the losses made last Friday. Right now the Sterling is facing the weekly PP at 1.6810. If this resistance is broken, there will be room for a larger bullish correction, possibly to the 100-day SMA just above 1.69. Though the bias will remain to the downside as long as the 2009 high at 1.7050 stays intact.
Traders' Sentiment
Most of the SWFX market participants expect the Sterling to outperform the U.S. Dollar, being that 59% of open positions are long. Meanwhile, the share of buy orders 50 pips from the spot noticeably declined, from 79 to 51%.
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