‘We read the technical indicators as suggesting there is scope for addition gains, but suspect the $1.3000-$1.3050 may be difficult to overcome.’ – BBH (based on FXStreet)
Pair’s Outlook
Downbeat UK Retail Sales were unable to relieve the British Pound of its strength, as it erased all intraday losses and held its positions above the 1.28 against the US Dollar on Friday. However, further upside momentum seems unlikely, as the 1.2850 level keeps providing relatively strong psychological resistance, now also bolstered by the upper Bollinger band. At the same time, a sharp bearish development is doubtful, due to the weekly PP and the monthly R1 forming a tough demand area at 1.2745. Until a solid market mover is presented the Cable is expected to remain within this trading range, namely between 1.2750 and 1.2850.
Traders’ Sentiment
Market sentiment remains in perfect equilibrium today, but the share of buy orders is higher-taking up 60% of the market (previously 57%).
