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"Some commentators have suggested that sterling has already been undermined by political uncertainty. But in fact its recent performance against the dollar can adequately be explained by movements in interest rate differentials between the US and UK."
- Capital Economics (based on WBP Online)
Pair's Outlook
On Wednesday, the Sterling appreciated against the Dollar, as was expected. The 1.52 level was crossed and the Cable even reached out to 1.53; however, the weekly PP stopped the climb, forcing the pair to settle at 1.5239. Today the British Pound is likely to extend the rally, while technical indicators are showing distinctly bullish signs. Immediate resistance retains its position at 1.5252, although a surge beyond 1.53 is more possible. Further resistance lies at 1.54 psychological level, which is also bolstered by the weekly R1.
Traders' Sentiment
Market sentiment among SWFX traders improved, as 49% of traders are now long the Sterling. The number of buy orders shifted to the minority, as also 49% of them are now to acquire the Pound.
© Dukascopy Bank SA