‘If you get a poorer retail sales number and worry about what unemployment will do, you might see some of these gains reversed and take us back down toward $1.28, maybe even toward $1.27 in the shorter-term.’ – Chris Beauchamp, IG (based on MarketWatch)
Pair’s Outlook
Another day ended with the GBP/USD pair remaining relatively flat, with the bullish momentum prevailing only slightly, despite an upbeat UK inflation reading. The Cable is now likely to edge further up, due to the immediate support being stronger than before. The pair is also expected to encounter resistance at 1.30, where the weekly R1, the upper Bollinger band and the consolidation trend’s upper border form a tough supply zone. Overall, the British Pound is to remain unchanged again, with a possible close near 1.2950. Meanwhile, technical indicators support the possibility of a rally.
Traders’ Sentiment
Traders retain a neutral outlook towards the Sterling, being that 51% of all open positions are long and the remaining 49% are short. The share of purchase orders inched up from 49 to 53%.
