© Dukascopy Bank SA
"A [UK CPI] number above expectations has the capacity to push the pound, up closer towards the highs seen last month at $1.5800."
- CMC Markets (based on WBP Online)
Pair's Outlook
Despite experiencing strong volatility to the downside, the GBP/USD currency pair still managed to end the day higher. However, the Bollinger band prevented the Cable from edging higher, forcing the Sterling to close trade just under the 1.56 psychological level. The Sterling is expected to climb up for another day today, in spite of technical indicators showing mixed signs. The Bollinger band, now at 1.5632, still acts as an immediate resistance, but there is also a possibility of a hike towards 1.57 major level, which is also bolstered by the weekly and monthly R1s.
Traders' Sentiment
Bulls keep losing ground, as only 55% of all positions are long today, while the buy orders edged up from 49 to 54%.
© Dukascopy Bank SA