‘While GBP managed to make a ‘fresh high’ of 1.2532, the up-move is lacking in momentum. That said, the undertone is generally positive and GBP could continue to edge higher towards 1.2550.’ – UOB Group (based on FXStreet)
Pair’s Outlook
Thursday was a relatively productive day for the British Pound, as it successfully stabilised above the 1.25 mark. However, downside risks are now higher, due to this major level being a tough psychological resistance, which tends to trigger U-turns lately, despite being crossed to the upside. As a result, the Cable could be seen undergoing a bearish correction today, with the monthly PP being a solid obstacle where support might be found. A much sharper decline is also possible, in which case the 55 and the 100-day SMAs are to limit the losses circa 1.24. Nevertheless, the GBP/USD is expected to continue recovering until the 1.27 handle is reached within the next month.
Traders’ Sentiment
Traders’ sentiment remains bullish, but now at 61% (previously 63%). The number of orders to sell the Sterling slid from 71 to 56%.
