‘We were heavily underweight (on sterling) but we have now eased that to a neutral stance.’ – Lombard Odier (based on Business Recorder)
Pair’s Outlook
The GBP/USD currency pair resumed trade in its consolidation trend on Monday, climbing back above the 1.25 handle. Since the Sterling keeps gravitating towards the 1.25 mark, a bearish development today would not be a surprise. However, the 20-day SMA kept providing the Cable with rather strong support lately, and with the help of the weekly PP, could spark more GBP-buying. Fundamental data might also provide a boost, providing the Pound with the opportunity to reach the 1.26 major level, with the weekly R1 being the closest resistance there. Technical studies, on the other hand, are unable to confirm either scenario.
Traders’ Sentiment
Both bullish market sentiment and the share of sell orders slid 1% point over the day, now taking up 61% and 54% of the market, respectively.
