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- Rabobank (based on Reuters)
Pair's Outlook
Yesterday the Cable behaved according to expectations, as the immediate support cluster succeeded in limiting the losses. Technically, the GBP/USD pair should now rebound and end the week with another rally, but demand around 1.3150, namely the immediate support cluster, might be insufficient and give in in wake of strong US fundamentals later today. Technical indicators are also giving bearish signals, suggesting that a close in the red zone is more probable. In case the closest support area is pierced, the 1.31 psychological level will be the next target, as it prevented the Pound from diving for more than two weeks now.
Traders' Sentiment
Sentiment is still close to neutral, with 52% of traders now being long the Sterling, compared to 54% on Thursday.
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