- Standish Mellon Asset Management Co. (based on Bloomberg)
The Sterling set off with a 125-pip rally against the Buck yesterday, unable to climb over the second tough . Technically, we should see the Cable bounce back under the 1.42 major level, with the weekly PP now acting as the nearest support at 1.4151. However, today's UK data could provide sufficient impetus for the GBP/USD currency pair to at least partially pierce the immediate resistance, as the four-week down-trend at 1.4290 is expected to hold. Daily technical indicators are still unable to provide any clear sense of direction, whereas the longer timeframe ones still suggest the momentum is to prevail.
Traders remain long the Pound, namely 64% of them (previously 66%). Meanwhile, the share of buy orders dropped from 65 to 58%.