- Morgan Stanley (based on Reuters)
Last Friday the Cable retested the down-trend, but ended the day with a weaker rally of 47 pips, due to a disappointment in UK Retail Sales data. Any attempts to appreciate today should be limited by the down-trend around 1.4316, as there are no clear signs of a breakout to occur. Technical studies, in turn, continue to give signals, suggesting the GBP/USD could turn around and suffer a loss today. As a result, a possibility of the Sterling piercing the immediate support in face of the weekly PP exists, with the pair stabilising closer to the 1.42 major level.
Market sentiment remains , now at 66% (previously 67%). The share of buy orders, however, lost 14% points, falling down to 40%