‘Broader signals suggest that 1.2675 may be reachable in the next few days if the Pound can hold support in the low 1.25s.’ – Scotiabank (based on PoundSterlingLive)
The GBP/USD pair erased its intraday gains on Thursday and slid back under the 1.25 threshold, due to US President Trump’s comments boosting the US Dollar. No major changes in the Cable’s performance are anticipated today, as the support cluster around 1.2440 is still sufficient to prevent the Pound from edging lower. At the same time, technical indicators are now giving bullish signals, implying fundamental data could restore the Sterling’s bullish momentum today. Other technical signs also suggest the British currency is to begin appreciating soon, but political events keep causing aberrations.
There were barely no changes in the market sentiment over the day, as it remains bullish at 61% (previously 62%). As for the pending orders, the share of buy ones declined from 50 to 44%.