‘If this week’s remaining U.S. indicators continue to be weak, such expectations that have supported the dollar could crumble easily.’ – IG Securities (based on Business Recorder)
Pair’s Outlook
As was anticipated, the GBP/USD currency pair made a U-turn on Monday, falling back under the 1.29 mark. However, the second support, namely the weekly S1 at 1.2829, was not reached yesterday, but the Cable is likely to put that demand level to the test today. Technical indicators, on the other hand, are unable to confirm this outlook, but they are no longer giving distinctly bullish signals in the daily timeframe either. Ultimately, the Sterling should weaken through the week and find support around 1.27, but a number of fundamentals, especially the US NFP, could provide the given pair with a solid boost, in which case the 1.30 handle could easily be overcome.
Traders’ Sentiment
Traders retain a neutral outlook towards the Pound, as 51% of all open positions are short. The share of buy orders surged from 40 to 66%.
