‘We do not believe the USD will weaken through key technical and psychological levels in the coming month.’ – HSBC (based on PoundSterlingLive)
Pair’s Outlook
The Cable weakened for the second day in a row yesterday, finding support in front of the tough demand area, represented by the weekly S1, the monthly PP, the 55 and the 100-day SMAs. The same cluster is now also reinforced by the 20-day SMA, bolstering the chance the Sterling is to rebound today. Technical indicators are also in favour of the positive outcome. The GBP/USD pair could even surge back above 1.25 and put the six-month down-trend to the test again. However, downside risks also persist, a driver for which would be the ADP data later today.
Traders’ Sentiment
Bullish traders’ sentiment returned to its last Wednesday’s level of 57%, whereas the share of purchase orders declined from 54 to 51% in the last 24 hours.
