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"The outlook for the UK economy is roughly unchanged despite the recent uncertainty related to China and emerging markets. The track record of how the pound performs during periods of risk aversion also suggests the pound does not trade predictably around event risk."
- MUFG (based on FXStreet)
Pair's Outlook
As anticipated, the Cable appreciated on Thursday, in spite of the BoE's policy remaining unchanged. The GBP/USD crossed the expected 1.54 threshold and eventually settled in front of the 20-day SMA. The given SMA is now providing support, while the BoE's aftereffect is likely to influence the Pound today and prevent it from edging lower. However, a tough resistance cluster rests just over the 1.55 mark, limiting any ultimate volatility to the upside today. Meanwhile, technical studies are showing bearish signs, suggesting the Buck might retreat to the weekly R1 at 1.5366.
Traders' Sentiment
Bulls and bears edged closer to equilibrium, with 52% of all positions now being long. The share of sell orders increased from 53 to 68%.
© Dukascopy Bank SA