‘Altogether we remain constructive on GBP and remain long via a basket of USD, EUR and AUD. We remove EUR/GBP upside from our 2017 forecasts and expect GBP/USD to test 1.37 by year-end.’ – Nomura (based on FXStreet)
Even though the US inflation data disappointed on Friday, the Cable was still unable to close in the green zone, but did manage to negate all intraday losses. Trade remained relatively unchanged, with the consolidation trend also intact, thus, a positive development today is expected. The 1.30 mark is the trend’s upper border, which is unlikely to be reached today, as no strong market movers are expected to emerge today. However, the nearest resistance, namely the weekly PP, is not much of an obstacle; therefore, more attention should be paid to the second supply area, formed by the weekly R1 and the upper Bollinger band circa 1.2985.
Market sentiment remains bullish, but now with bulls slightly outnumbering the bears, as 51% of all open positions are long.