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"The market's focus is on how much the U.S. economy has recovered in the second quarter from the first quarter. There aren't many events in the Tokyo and London trading hours until the U.S. consumer spending indicators are released, so a wait-and-see mood is likely to prevail until then."
- BBH (based on CNBC)
Pair's Outlook
After experiencing some volatility, the Cable sustained minor losses. Pair stabilised near 1.57, just in front of the monthly R1, as was anticipated. Today technical studies retain their distinctly bullish signals, but a rally is actually expected, unlike on Wednesday. The closest resistance is still located at 1.5762, represented by the weekly PP, but 1.58 major level provides stronger resistance, as it prevented the climb yesterday and even pushed the Sterling down.
Traders' Sentiment
Open positions broke out of the equilibrium, with 51% of them now being short. Meanwhile, the number of purchase orders declined nine percentage points. The commands now take up only 45% of the market.
© Dukascopy Bank SA