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"We're now more conscious that there's strength in the U.S. economy. There were some views that the U.S. won't be able to raise rates on economic concern, so the weakening dollar should take a break."
- Okasan Securities Co. (based on Bloomberg)
Pair's Outlook
The British Pound remained almost completely unchanged against the US Dollar on Friday, with the monthly PP limiting the losses at 1.4141. However, due to a bearish gap today, trade opened below this mark. Consequently, the monthly PP is now providing immediate resistance, while the second target is located around 1.4250, represented by the weekly PP, the 20 and the 55-day SMAs. Meanwhile, the weekly S1 and the Bollinger band form a support cluster around 1.3977, as a possibility of a bearish development exists, amid technical studies in the medium and longer timeframes remaining bearish.
Traders' Sentiment
Market sentiment remains bullish at 63%, compared to 62% on Friday. At the same time, the number of orders to acquire the British currency increased from 58 to 59%.
© Dukascopy Bank SA