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"This is more dollar weakness, driven by the market coming around to the fact that these economic releases are weaker."
- TJM Brokerage (based on WBP Online)
Pair's Outlook
Yet again the US fundamentals weighed on the Greenback. As a result, the British Pound climbed up for the fourth day in a row, completely negating last week's losses. Moreover, the 1.49 barrier was crossed, and the GBP/USD pair closed at 1.4924. On Friday, a smaller rally is expected, although a possibility of a decline exists. The gains should be limited by strong resistance at 1.50, while a fall back towards 1.48 is the likely outcome if data releases disappoint.
Traders' Sentiment
Trader's outlook towards the Sterling slightly improved, as 43% of all positions are now long (previously 41%). The buy orders are now in the minority, taking up 47% of the market, compared to 63% yesterday.
© Dukascopy Bank SA