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GBP/USD locked in between 1.52 and 1.54 despite rally

© Dukascopy Bank SA
"A lot of people are quite skeptical that this payroll data we had on Friday is really a true reflection of how strong the economy is."
- Nomura Securities International (based on CNBC)

Pair's Outlook
The Sterling surprised with its performance yesterday, as it almost erased last week's losses. The weekly PP was unable to prevent the rally, whereas 200-day SMA succeeded. The Cable is struggling to pierce the SMA today, which is likely to push the pair back down. Moreover, a strong resistance cluster around 1.54 will not allow the Cable to advance, while technical studies retain bearish signs, bolstering the possibility of a negative outcome. The weekly PP around 1.53 is now the closest support and should limit the losses.

Traders' Sentiment
Long positions remain unchanged for the third time, as 59% of traders still have a positive outlook towards the Sterling. The number of orders to acquire the Cable increased from 48 to 64%.

© Dukascopy Bank SA


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