© Dukascopy Bank SA
"Despite the weak durable goods number this morning, generally speaking I think people see the U.S. economy accelerating, leading to a Fed rate hike."
- BBH (based on FX Street)
Pair's Outlook
The Cable declined for the second day in a row yesterday, as weekly PP failed to provide sufficient support. As a result, Sterling fell under 1.58 level and almost reached the 1.57, but was pushed slightly back to 1.5737 by the monthly R1. The weekly pivot point now acts as the immediate resistance. Furthermore, technical studies are now showing very strong bullish signs, suggesting the GBP/USD is to rise today; but a rally is possible only if the US fundamentals disappoint today. Other signs indicate that the Greenback is likely to outperform the Pound, with a possible slump under 1.57.
Traders' Sentiment
Traders' sentiment has reached a perfect equilibrium, while the share of buy orders slid from 58 to 54%.
© Dukascopy Bank SA