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"The UK and US economies have clearly been in a far more advanced cyclical position relative to the euro area and Japan for a long time now. And we still believe the UK to be the front-runner of them all, just not in terms of the monetary policy setting."
- Nomura (based on FXStreet)
Pair's Outlook
The Sterling suffered heavy losses against the US Dollar on Friday, amid an extremely better-than-expected Non-Farm Payrolls data. As a result, not only the seven-month support was pierced, but also the Sep low of 1.5106. Technical studies remain bearish today, but due to lack of impetus the Cable might remain unchanged over the day; however, after falling more than 300 pips last week a correction is more likely to take place. Immediate resistance is represented by the Bollinger band at 1.51, while the nearest support leaves enough room for a decline towards 1.4950.
Traders' Sentiment
Bears took the upper hand, accounting for 54% of the market, whereas the share of sell orders increased from 47 to 51%.
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