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"A powerful expectation for stronger [US economic] growth remains very much intact, and this is why neither the policy bias at the Fed nor the level of yields has changed since the last FOMC meeting on March 18."
- TD Securities (based on WBP Online)
Pair's Outlook
On Tuesday, Cable managed to over-perform. GBP/USD breached strong resistance cluster around 1.53 and kept rising up to 1.5328. This is the third week of pure gains for the Sterling, with exception of last Monday, when the Pound suffered a small setback. Technical indicators are showing bullish signs, suggesting further rally. The Bollinger band is also backed by 1.54 psychological level and weekly R2, which together should stop the surge. However, a jump towards the 200-day SMA at 1.5493 should not be dropped off the map.
Traders' Sentiment
Less SWFX traders have a positive outlook towards the Sterling, as 43% of all positions are long. The portion of purchase orders is now in the majority; they take up 51% of the market.
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